Washington Mutual customers may want to keep an eye on their mailboxes this week, as more HELOC freeze notices are on their way. According to the San Francisco Business Times, WaMu is sending out an undisclosed number of new line reduction letters:

“Washington Mutual, Inc. has slashed or suspended $6 billion in available home equity credit to its customers in an effort to reduce its risk in a flailing housing market.

If they haven’t already been notified, WaMu’s customers across the country will learn of the change to their credit availability in a letter mailed to them in the next several days. The bank declined to disclose how many customers will be affected…

According to a statement released by the company: “We will continue to evaluate home equity lines of credit in relationship to the amount of equity a customer has in their home and, if appropriate, will lower the line amount according to WaMu’s line management guidelines.”

These notices are being sent without a formal appraisal of the properties. So, if you live in an area experiencing declining home values, your chances of receiving a HELOC freeze letter are high.

If you plan on using your HELOC line within the next few months, you may want to withdraw and invest funds now. If you’ve already received a notice from WaMu, it may be too late to withdraw. But, there are still a few options available including requesting a review of your home’s assumed value or refinancing with a different lender.

See Also:

How the HELOC Freeze Can Damage Your Credit Score

Which Lenders are Freezing HELOC Lines?

Tags | Heloc, heloc freeze, home equity loan, lenders, Washington Mutual