HELOC Loans Not Easy To Get..

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Real Estate Agent with La Rosa Realty
Have you heard, lenders and closing the doors on home equity line of credit.  Why, according to reports in the Sentinel, lenders are also worried about real estate values, etc.  So for some who were depending on their equity to be there, it's now tougher than ever to find a lender willing to lend you some money.
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Rainer
22,289
Cape Coral Florida Golf Course and Waterfront Homes
Gulf Coast Realty Network, Inc. - Cape Coral, FL
The worst part of this situation is for persons who already have a line of credit.  Banks are locking the credit line at the outstanding balance.  Borrowers, who were drawing down a little bit every month to make payments on other property, now find themselves without any new funds. and still have to pay on the credit line.  I've had several calls this week from folks who are in a terrible bind all of a sudden.  Actually, they have been in a bind for quite awhile, but the freeze on their credit line just brings it to a head.
JimG
Apr 17, 2008 06:12 AM #1
Rainer
24,873
Charles G. Hennebeul
AMERICAN CASH SOLUTIONS INC - Melville, NY

Hi Netta-part of the problem is not only equity positioning, it also has to do with insurance.  One bank stopped doing seconds because the insurer withdrew  backing the portfolios for this bank which is I think part of the Mortgage Back Securitization process.

My opinion is that we will have double digit interest rates in about 3 years to five years and you will see one of the strongest buyers market copared to any buyers market seen in the past 40 years!

Apr 17, 2008 06:22 AM #2
Ambassador
789,623
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros
I have an equity line and as we pay it off we were going to use it for other things now who knows
Apr 17, 2008 06:32 AM #3
Rainmaker
563,705
Pam Joffe
Solaris Realty - Tampa, FL
Netta - This is all a sign of the tightening credit, credit was so easy in the past, now it is like the pendalum is swinging really hard in the other direction.
Apr 17, 2008 07:06 AM #4
Anonymous
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Anonymous
Please call it what it is:  A SECOND MORTGAGE. 
Apr 17, 2008 07:09 AM #5
Rainmaker
298,491
Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes
I have to agree with Jim people who have HELOCs then cant use the funds they were approved for because they freeze the account because the home wont appraise anymore. I got lucky and received my heloc, I fought for the thing with people in underwriting but by golly I got it.
Apr 17, 2008 07:12 AM #6
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61,226
Netta Blackwood
La Rosa Realty - Kissimmee, FL
REO/BPO Expert
I saw this coming back from last year and yes, I took advantage of the opportunity to take out some equity for emergency use.  I sure hope there will be some exception to this rule.  If not, if the thing the market is bad now, wait until the next couple of months when some who were counting on their equity now have no other alternatives.
Apr 17, 2008 09:07 AM #7
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Rainer
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Netta Blackwood

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