Posted on: 30th Nov, 2008 12:09 pm
what recourse does the lender have if the equity value drops below the outstanding equity line of c...Is an equity line on my house considerd a secured loan if the value drops below what is owed on the property?
Hi gschattl,
As far as I know, the lenders have right to limit the HELOC withdrawals if the equity of the home has fallen by 50 percent. So you will have to consult the lender first and check what he has to say in this regard. According to the rules, the borrowers should be given the opportunity to ask for a review of the institutions decision to reduce or suspend a credit line.
Thanks.
As far as I know, the lenders have right to limit the HELOC withdrawals if the equity of the home has fallen by 50 percent. So you will have to consult the lender first and check what he has to say in this regard. According to the rules, the borrowers should be given the opportunity to ask for a review of the institutions decision to reduce or suspend a credit line.
Thanks.