Home Equity Loans shut down/frozen

[AMISLANDER]

If you haven't heard this one yet.....(following close behind the credit card interest rising)...you can google it...letters are in the mail...I only found out because one of my friends who's a realtor mentioned it to me yesterday afternoon & I googled it today & sure enough!

Wells Fargo, Washington Mutual, Bank of America, Chase...and more are all freezing their home equity line customers...due to the mounting and probably more, soaring foreclosures across the country.

Just another day in the way of our world.

[BKOnce]

Recession in progress.

[One Half Full]

Pretty soon they'll make foreclosure illegal. If you buy a house you'll be stuck in it for 30 years just to make the bank happy

[cbass1017]

I can partially explain this new close equity phenomenon. It really makes a lot of sense if you think about it. Many people have always taken advantage of the equity in their homes. Because of the fact that homes have always increased in value in the recent past this has never been a dilema like it is now. The main reason most banks are freezing equity lines of credit is because even though people know their home value has fallen they still completely max out their equity, which is actually no longer equity. Then when the situation arises where you have to move or sell your home you simply can't afford to pay the difference in what you owe on your home compared to what you have borrowed against it or what others are willing to pay for your home. In some cases it isn't right but in most cases banks have every right to do this. If people can't control their spending habits someone else will have to do it for us.

[Bandit]

Pretty soon they'll make foreclosure illegal. If you buy a house you'll be stuck in it for 30 years just to make the bank happy

ROFL!!! I just bust my gutt.
We pay on this house for 60 years and then we owe more on it than what you paid 60 years ago but it is worth only half of the original sale 60 years ago.

Can we just kill the 1% of the country who owns 40% of the wealth? Would that help for awhile?

so you will be stuck in this house until you die & it will never be paid for...

[One Half Full]

so you will be stuck in this house until you die & it will never be paid for...

That's called RENT

But at least with RENT, you are not stuck

[Bandit]

That's called RENT

But at least with RENT, you are not stuck

but in a round about way, if foreclosing were illegal & you cannot borrow on equity because it is not there any more, that is what you would have....a stuck renter.

[fred333]

I would hate to be in that situation as a renter.

[lrprn]

Scott, I deleted the link to your website in your signature. It's against our forum rules to include links like this without prior permission from our administrator, Lazar or before you make 100 quality posts that contribute to the forum.

[robivi3]

A good and very wealthy friend reported that his sister in law with excellent credit was refused a HE Loan yesterday.

He reported today:
From 103rd Street to 199 Street N/S and Miami Avenue on the west to Biscayne BLVD on the east 1200 listings, 6 closings since Jan, 11 units under contract. Bad Market

[AMISLANDER]

A good and very wealthy friend reported that his sister in law with excellent credit was refused a HE Loan yesterday.

He reported today:
From 103rd Street to 199 Street N/S and Miami Avenue on the west to Biscayne BLVD on the east 1200 listings, 6 closings since Jan, 11 units under contract. Bad Market

WOW!!! Which bank was the refuser?

[robivi3]

Didn't ask, he just knew that she was refused.