Nascarcruzin
Home is where the RV is parked.
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When they close the line of credit, do they call it due in full?
Ronnie & Rebecca
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Bubby's RV
CA
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Joined: 07/22/2003
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I've heard of it happening. In our case, they increased our equity line limit and lowered the interest rate. They called last week and told us they were lowering the interest rate again. We said "This doesn't cost us anything, right?" "That's right." We said, "Ok, whatever."
We didn't tap the last one, and we don't expect to tap this one, either.
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Matthew_B
The boonies near Dallas, Oregon
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Nascarcruzin wrote:When they close the line of credit, do they call it due in full?
Nope, they still have to follow the terms of payment. They just won't allow any new withdrawals.
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bsinmich
Holland, MI
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My Credit Union was just asking me if I didn't want a home equity line of credit to buy something I wanted. My home is paid for and I said why would I want a mortgage? Even though it has dropped 20% in the past few years the taxes have gone up. That one still has me stumped. Some places are still trying to get loans out.
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Charlie D.
Gonzales, La.
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Skid Row Joe wrote:Too many people are now identified as subprime in their credit worthiness. Industry is covering their bases.
Joe, does your comment mean that you are beginning to think that we MAY be in a recession?
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Barry E.
Orlando, Florida
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donsm60 wrote:Barry, they must be literally reevaluating every individual and going neighborhood by neighborhood here in the Orlando area. This has happened to a half dozen people that I know of so far and the most recent is a family that was approved and closed on a line for home improvements and two weeks later the bank closed it.
I live near Sea World and know that locally, property values took quite a hit. There's also a lot more foreclosures than usual. This also makes lenders nervous. The reason being, there are people who will, during times like this, do a cash out refi or open a line of credit before bailing out...
What kind of service does your company provide?
Have you considered talking to your bank directly about securing home improvement loans? I would think that a local lender might be more amenable to extending a $5,000 loan, than a large outfit like JP Morgan/Chase would be to servicing a $20,000 line.
All you would have to do is simply hand out loan applications on behalf of the bank.
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sneakers145
CT
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They just pulled the line of credit on my brother's house. Unfortunately it's not closed, just 'suspended.' Therefore he can't borrow against his house for any improvements, nor can he try to get a new line of credit elsewhere because that one is just suspended but not really closed. And they won't close it, either.
Jay
Jay
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JALLEN4
OHIO
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sneakers145 wrote:They just pulled the line of credit on my brother's house. Unfortunately it's not closed, just 'suspended.' Therefore he can't borrow against his house for any improvements, nor can he try to get a new line of credit elsewhere because that one is just suspended but not really closed. And they won't close it, either.
Jay
Couldn't he borrow somewhere else if it included a payoff on the present loan?
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jcapps
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Cancelling equity loans is prudent for a bank to do in a recession with falling real estate prices. They don't have the manpwer to review each loan and re- appraise each home so they go by what is happening in the general area.
I would imagine that if one had good equity in their home all it would take is a call to the bank to get a review
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Sea Dog
Ontario Can.
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I do not understand this thread!
Why do so many people need to borrow against equity to improve their home?
Does no-one have any cash?
Surely this idea for a kitchen up grade or whatever did not come out of the blue, if folks can assume the extra payments, why can they not save up the cost in a couple of years?
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Take a vacation.
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