HELOC adjustment?

jim · Joined: 16 Jan 2008 Posts: 3 2.10 Dollars($)

Can/will a lender reduce the credit line on an open HELOC with zero balance if the property value decreases in a soft real estate market? Do they periodically review this type of thing?

banker0679 · Posted: Fri Jan 18, 2008 11:41 am Post subject:

Nobody here would know that answer to your question.

You can review your HELOC closing documents that will say yes or no.
Every lender is different so the answers may vary, and the definite answer will come from the documents you signed.

lisascherzer · Joined: 04 Jan 2008 Posts: 599 69.58 Dollars($)

I have never heard of a lender reducing your credit line. Just make sure you keep the payments on time. If you become behind on your payments, they may have the right to do so. If you are on time, they wont take the time to run a value on your property for no reason. Again, I wouln't worry about this happening.

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