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propertylender.c
762 Posts |
 Posted - 03/27/2008 : 12:48:03 AM
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did.
So it came as a surprise yesterday when we got the letter from Citibank about our $168,000 line of credit: "We have determined that home values in your area, including your home value, have significantly declined. As a result of this decline, your home’s value no longer supports the current credit limit for your home equity line of credit. Therefore, we are reducing the credit limit for your home equity line of credit, effective March 18, 2008, to $10,000. Our reduction of your credit limit is authorized by your line of credit agreement, federal law and regulatory guidelines."
http://globaleconomicanalysis.blogspot.com/2008/03/citigroup-freezes-helocs.html |
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JoefromPhilly
341 Posts |
Posted - 03/27/2008 : 06:57:59 AM
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This is the new wave of actions from banks. They are expecting massive losses on equity lines of credit due to declining values. Many lenders are requiring that the lines be paid off before a refi or sale of a home.
- Joe |
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propertylender.c
762 Posts |
Posted - 03/27/2008 : 07:36:31 AM
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quote:
Originally posted by JoefromPhilly
This is the new wave of actions from banks. They are expecting massive losses on equity lines of credit due to declining values. Many lenders are requiring that the lines be paid off before a refi or sale of a home.
- Joe
I guess the new conforming loan limits was just hype. |
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peter
3190 Posts |
Posted - 03/27/2008 : 10:48:38 PM
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This is a classic case of the Great Credit Crunch that
will cripple many small busineses that rely on the use of
Heloc as their working capital.
People will try to cash out thru whichever way they can,
and for those who can still go full doc FHA cashout refi to
90 or 95% could come in as a solution. Non-arm's length
purchases between family members and relatives is another
way of getting maximum cash out, especially if the buyer
can go full doc and purchase on a 90 or 95% or with 80%
with gift of equity.
When one door shuts, the wind will have to find an outlet
and it could blow thru another backdoor or backwindow.
Peter |
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celloshred
1375 Posts |
Posted - 03/27/2008 : 11:26:27 PM
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| best non-arms length purchase lenders? |
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