Trying to tap into home equity? We’ll see……………..

[Ex-SD]

Countrywide and others tell thousands of homeowners that they can no longer borrow against their credit lines as the companies tighten standards.
By Kathy M. Kristof and E. Scott Reckard, Los Angeles Times Staff Writers

“A lot of people are in that situation right now because they just kept refinancing and took out all the equity in their homes,” said Teresa Becerra, a senior real estate loan officer at Cityside.

“They’ll have a couple of mortgages they want to combine now. But we can do a computer appraisal right away, and what they’re finding out is that the value just isn’t there.”

AND A WHOLE LOT MORE IN THIS ARTICLE:

http://www.latimes.com/business/la-fi-loans1feb01,0,6255734.story

[EconProf]

BobS

[EconProf]

BobS
Interesting development.
What should those of us do who were planning to tap into our HELOCs…take the money out in advance? Assuming the bank would be less likely or less able to reduce the HELOC once the money was borrowed, perhaps we should preempt them…stick the money into t-bills or something while waiting.
I have a big chunk of unused HELOC I was hoping to borrow once the market bottomed. Anyone else in this situation?

[Eugene]

Check your HELOC documents. IIRC the bank may require you to pay off the HELOC if your equity falls below certain level.

[temeculaguy]

I was suprised to see this thread fall with so few comments, maybe it was covered on a different thread and my being away for a few days caused me to miss it. This is actually a pretty significant event for the local economy, this is a credit crunch where the tires meet the pavement.

http://www.nctimes.com/articles/2008/02/02/business/news/19_29_392_1_08.txt

In this article they highlight a local realtor who was using his house as a “payday advance.” While I think a realtor shouldn’t anticipate that the next payday will come at all and the lender is smart to cut off his supply, there are a lot of people in industries who have income that does come in chunks that will be affected. There are also a lot of industries that will see sales drying up as a result of the lack of helocs. The credit crunch was primarily contained to wall street and between financial institutions until now.

Check out the blogger comments at the bottom, it looks like the piggington way of thinking has spread to mainstream crazies and not just confined to us finance and R/E crazies.

[Arty]

Wow, does people really think HELOC is the safety net? In theory, your safety net should be your saving or go buy an insurance please :).

[Arty]

Wow, does people really think HELOC is the safety net? In theory, your safety net should be your saving or go buy an insurance please :).

[Arty]

Wow, does people really think HELOC is the safety net? In theory, your safety net should be your saving or go buy an insurance please :).

[Arty]

Wow, does people really think HELOC is the safety net? In theory, your safety net should be your saving or go buy an insurance please :).

[Arty]

Wow, does people really think HELOC is the safety net? In theory, your safety net should be your saving or go buy an insurance please :).

[temeculaguy]

I was suprised to see this thread fall with so few comments, maybe it was covered on a different thread and my being away for a few days caused me to miss it. This is actually a pretty significant event for the local economy, this is a credit crunch where the tires meet the pavement.

http://www.nctimes.com/articles/2008/02/02/business/news/19_29_392_1_08.txt

In this article they highlight a local realtor who was using his house as a “payday advance.” While I think a realtor shouldn’t anticipate that the next payday will come at all and the lender is smart to cut off his supply, there are a lot of people in industries who have income that does come in chunks that will be affected. There are also a lot of industries that will see sales drying up as a result of the lack of helocs. The credit crunch was primarily contained to wall street and between financial institutions until now.

Check out the blogger comments at the bottom, it looks like the piggington way of thinking has spread to mainstream crazies and not just confined to us finance and R/E crazies.

[temeculaguy]

I was suprised to see this thread fall with so few comments, maybe it was covered on a different thread and my being away for a few days caused me to miss it. This is actually a pretty significant event for the local economy, this is a credit crunch where the tires meet the pavement.

http://www.nctimes.com/articles/2008/02/02/business/news/19_29_392_1_08.txt

In this article they highlight a local realtor who was using his house as a “payday advance.” While I think a realtor shouldn’t anticipate that the next payday will come at all and the lender is smart to cut off his supply, there are a lot of people in industries who have income that does come in chunks that will be affected. There are also a lot of industries that will see sales drying up as a result of the lack of helocs. The credit crunch was primarily contained to wall street and between financial institutions until now.

Check out the blogger comments at the bottom, it looks like the piggington way of thinking has spread to mainstream crazies and not just confined to us finance and R/E crazies.

[temeculaguy]

I was suprised to see this thread fall with so few comments, maybe it was covered on a different thread and my being away for a few days caused me to miss it. This is actually a pretty significant event for the local economy, this is a credit crunch where the tires meet the pavement.

http://www.nctimes.com/articles/2008/02/02/business/news/19_29_392_1_08.txt

In this article they highlight a local realtor who was using his house as a “payday advance.” While I think a realtor shouldn’t anticipate that the next payday will come at all and the lender is smart to cut off his supply, there are a lot of people in industries who have income that does come in chunks that will be affected. There are also a lot of industries that will see sales drying up as a result of the lack of helocs. The credit crunch was primarily contained to wall street and between financial institutions until now.

Check out the blogger comments at the bottom, it looks like the piggington way of thinking has spread to mainstream crazies and not just confined to us finance and R/E crazies.

[temeculaguy]

I was suprised to see this thread fall with so few comments, maybe it was covered on a different thread and my being away for a few days caused me to miss it. This is actually a pretty significant event for the local economy, this is a credit crunch where the tires meet the pavement.

http://www.nctimes.com/articles/2008/02/02/business/news/19_29_392_1_08.txt

In this article they highlight a local realtor who was using his house as a “payday advance.” While I think a realtor shouldn’t anticipate that the next payday will come at all and the lender is smart to cut off his supply, there are a lot of people in industries who have income that does come in chunks that will be affected. There are also a lot of industries that will see sales drying up as a result of the lack of helocs. The credit crunch was primarily contained to wall street and between financial institutions until now.

Check out the blogger comments at the bottom, it looks like the piggington way of thinking has spread to mainstream crazies and not just confined to us finance and R/E crazies.

[Eugene]

Check your HELOC documents. IIRC the bank may require you to pay off the HELOC if your equity falls below certain level.

[Eugene]

Check your HELOC documents. IIRC the bank may require you to pay off the HELOC if your equity falls below certain level.

[Eugene]

Check your HELOC documents. IIRC the bank may require you to pay off the HELOC if your equity falls below certain level.

[Eugene]

Check your HELOC documents. IIRC the bank may require you to pay off the HELOC if your equity falls below certain level.

[EconProf]

BobS
Interesting development.
What should those of us do who were planning to tap into our HELOCs…take the money out in advance? Assuming the bank would be less likely or less able to reduce the HELOC once the money was borrowed, perhaps we should preempt them…stick the money into t-bills or something while waiting.
I have a big chunk of unused HELOC I was hoping to borrow once the market bottomed. Anyone else in this situation?

[EconProf]

BobS
Interesting development.
What should those of us do who were planning to tap into our HELOCs…take the money out in advance? Assuming the bank would be less likely or less able to reduce the HELOC once the money was borrowed, perhaps we should preempt them…stick the money into t-bills or something while waiting.
I have a big chunk of unused HELOC I was hoping to borrow once the market bottomed. Anyone else in this situation?

[EconProf]

BobS
Interesting development.
What should those of us do who were planning to tap into our HELOCs…take the money out in advance? Assuming the bank would be less likely or less able to reduce the HELOC once the money was borrowed, perhaps we should preempt them…stick the money into t-bills or something while waiting.
I have a big chunk of unused HELOC I was hoping to borrow once the market bottomed. Anyone else in this situation?

[EconProf]

BobS
Interesting development.
What should those of us do who were planning to tap into our HELOCs…take the money out in advance? Assuming the bank would be less likely or less able to reduce the HELOC once the money was borrowed, perhaps we should preempt them…stick the money into t-bills or something while waiting.
I have a big chunk of unused HELOC I was hoping to borrow once the market bottomed. Anyone else in this situation?

[EconProf]

BobS

[EconProf]

BobS

[EconProf]

BobS

[EconProf]

BobS

[Author]

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