Don’t Come to ME for a Home Equity Line of Credit

February 26th, 2008 category: East End LI Foreclosures, Real Estate News

Much has been written about the depreciating value of homes, and the subsequent difficulties facing borrowers when they attempt a home purchase- tighter lending requirements, higher costs associated with the loans, and appraisal issues have created a complicated buying scenario (not to mention additional gray hairs for sellers).

On the heels of change comes another shocker for some: Home Equity Lines of Credit (HELOC).

As shared here, large banks are pulling the plug on some existing HELOCs, wreaking havoc for homeowners who have decided to utilize what remains of their equity in order to finance some of life’s events (college and home improvements are among common uses for HELOC’s).

As detailed in the link provided above, major players want “out” of the line of credit game, indicating awareness that our downward plunge has yet to hit bottom.

What is most alarming is that credit-worthy recipients are as likely to be targeted as those that have less than stellar credit- suddenly, “credit worthy” is becoming increasingly difficult to define.

Interesting that banks, on the heels of their own loose lending, are now creating a disadvantage for those homeowners that, for all intents and purposes, have demonstrated a willingness to stay above the fray by maintaining strong credit scores.

If you are a homeowner who has decided to stay put and either fix up your property, or utilize remaining equity for life changes, the suggestion in the article appears to be do it now…or not in the near future.

It would appear that banks are finished dealing with the mess that was created out of their own lending practices- perhaps draining 401k’s is better for the consumer (???).

This entry was posted on Tuesday, February 26th, 2008 at 10:16 pm and is filed under East End LI Foreclosures, Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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