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.

The appeals process will most likely require a new appraisal of your home’s value, which will cost you a few hundred dollars. If you are in an area that hasn’t experienced falling home values, appealing the freeze might work. Just be sure and check your credit report before you appeal as some freezes might occur due to something on your credit report.

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)

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