Consumerist
According to Yahoo Finance, there are several things you can do if you are one of the many homeowners who found out that their home equity line of credit was frozen by the lender. If your HELOC is frozen you can:
- Accept the lender's new terms and use other sources
- Try to appeal the freeze by contacting your lender and asking them about their appeals process.
- Try to refinance with another lender if your current lender won't budge.
It might also be possible to refinance with a different lender if your credit is in good shape and your home's value is stable. Just remember that a refinance may involve closing costs.
— JLP, AllFinancialMatters
(Photo: Getty)
Comments
That was a whole lot of nothing advice.
Better idea: don't thaw it! Keep the equity in your house!
@ADismalScience:
Gotta agree on this one. In many cases that I have read about lately,the lenders are really doing the borrowers a favor by not letting them get way overextended.The noise you hear in the media (including here) is the inevitable pain that results from taking the addictive substance (debt) away from the addict (debtors). Late,perhaps,but necessary if we don't
want sequel to what's happening with housing.
@Snarkysnake: You've got a ggod point and to add to it, both of the hypotheticals are assuming the worst of the value drop is over. What if it isn't? What if they allow some of these addicts to assume more debt? Truly a lose, lose situation... for the lenders, borrowers, investors, government, neighbors...
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