According to some reports, Wachovia has continued freezing home equity lines of credit for several weeks.

The Philadelphia Inquirer explains:

“Wachovia credit-line customers whose home equity has declined 50 percent or more received letters in the last several weeks saying that their credit lines had been reduced or blocked, Wachovia spokeswoman Barbara Nate said.

“Our rationale is that we don’t want customers to get in a situation where they can’t afford their outstanding commitment,” Nate said.”

You have to admit, 50% is a huge drop in equity. Homeowners experiencing that kind of decline may have more to worry about that accessing their HELOCs.

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Tags | Heloc, heloc freeze, home equity line of credit, mortgage crisis, Wachovia