Got a letter yesterday from WaMu slashing my home equity line of credit by two-thirds. Claimed it was allowed under our loan terms, as the value of their collateral (my house) had fallen (it has). This is being done in other hard-hit areas of the nation and will be another blow to consumer spending and worsen the fallout from the housing price decline.
In my case, I had been planning on using the HELOC to invest in properties or trust deeds at the bottom of the cycle. Perhaps I should have drained the line of credit in advance, though I don’t know if they could then have demanded it back, giving me my own little liquidity crisis. Anyone else in this situation?
They reduced it for a number of reasons. Including a decrease in your credit or that your home value has declined enough that the HELOC would have no equity behind it. This is completely justified.
They reduced it for a number of reasons. Including a decrease in your credit or that your home value has declined enough that the HELOC would have no equity behind it. This is completely justified.
They reduced it for a number of reasons. Including a decrease in your credit or that your home value has declined enough that the HELOC would have no equity behind it. This is completely justified.
They reduced it for a number of reasons. Including a decrease in your credit or that your home value has declined enough that the HELOC would have no equity behind it. This is completely justified.
They reduced it for a number of reasons. Including a decrease in your credit or that your home value has declined enough that the HELOC would have no equity behind it. This is completely justified.
