U.S. lenders freeze home equity credit lines

[susa]

Reeling from losses on their wretched loan decisions of recent years, lenders are preventing borrowers with pristine credit and significant equity in their homes from tapping into credit lines that they paid dearly to secure.

In the past 30 days, lenders have sent several hundred thousand letters advising borrowers that their home equity lines of credit are frozen, estimated Michael Kratzer, president of FeeDisclosure.com, a Web site intended to help consumers reduce fees on home loans.

Major lenders – including Washington Mutual, IndyMac Bank and the Greenpoint Mortgage Unit of Capital One – say that declining property values are prompting the decisions to cut off credit.

http://www.iht.com/articles/2008/04/13/business/morgen14.php

[Anonymous]

I can understand this. Property values are dropping, banks are doing what they feel they need to do to protect their interests in this case.

[Anonymous]

I can understand this. Property values are dropping, banks are doing what they feel they need to do to protect their interests in this case.

[Anonymous]

I can understand this. Property values are dropping, banks are doing what they feel they need to do to protect their interests in this case.

[Anonymous]

I can understand this. Property values are dropping, banks are doing what they feel they need to do to protect their interests in this case.

[Anonymous]

I can understand this. Property values are dropping, banks are doing what they feel they need to do to protect their interests in this case.

[stop_the_bubble_hype]

Interesting, but not the first time we are seeing this. I am in a situation where I have an equity line I can pay off and I’m on the fence about whether to do so or not. The interest rate is 4.775 and I’m afraid that if I pay it off I will be in a similar situation. For now, I have decided to hold tight and not pay it off until the credit squeeze eases a bit. When that happens I’ll likely pay it off and hopefully benefit from the higher credit score having a high untapped line will bring. If things get worse, I’ll have added security of having even more cash in the bank.

Tough times.

[stop_the_bubble_hype]

Interesting, but not the first time we are seeing this. I am in a situation where I have an equity line I can pay off and I’m on the fence about whether to do so or not. The interest rate is 4.775 and I’m afraid that if I pay it off I will be in a similar situation. For now, I have decided to hold tight and not pay it off until the credit squeeze eases a bit. When that happens I’ll likely pay it off and hopefully benefit from the higher credit score having a high untapped line will bring. If things get worse, I’ll have added security of having even more cash in the bank.

Tough times.

[stop_the_bubble_hype]

Interesting, but not the first time we are seeing this. I am in a situation where I have an equity line I can pay off and I’m on the fence about whether to do so or not. The interest rate is 4.775 and I’m afraid that if I pay it off I will be in a similar situation. For now, I have decided to hold tight and not pay it off until the credit squeeze eases a bit. When that happens I’ll likely pay it off and hopefully benefit from the higher credit score having a high untapped line will bring. If things get worse, I’ll have added security of having even more cash in the bank.

Tough times.

[stop_the_bubble_hype]

Interesting, but not the first time we are seeing this. I am in a situation where I have an equity line I can pay off and I’m on the fence about whether to do so or not. The interest rate is 4.775 and I’m afraid that if I pay it off I will be in a similar situation. For now, I have decided to hold tight and not pay it off until the credit squeeze eases a bit. When that happens I’ll likely pay it off and hopefully benefit from the higher credit score having a high untapped line will bring. If things get worse, I’ll have added security of having even more cash in the bank.

Tough times.

[stop_the_bubble_hype]

Interesting, but not the first time we are seeing this. I am in a situation where I have an equity line I can pay off and I’m on the fence about whether to do so or not. The interest rate is 4.775 and I’m afraid that if I pay it off I will be in a similar situation. For now, I have decided to hold tight and not pay it off until the credit squeeze eases a bit. When that happens I’ll likely pay it off and hopefully benefit from the higher credit score having a high untapped line will bring. If things get worse, I’ll have added security of having even more cash in the bank.

Tough times.

[Author]

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