Home Sale Relief

I used to have a line of credit on my last house, a home equity line of credit with a major bank. I always wondered what would happen if the equity fell on my house. Would they take away the line of creidt?

I am the developer of the Mortgage Relief Formula and I talk to a lot of homeowners who are faciging foreclosure and have HELOCs in foreclosure. Or they are paying their first mortgage payment using the HELOC.

So now there is a story from the Los Angeles Times that shows lenders are taking away HELOCs:

 Tens of thousands of homeowners with home equity lines of credit are getting a rude surprise: They’ve been told by their lender that they can no longer take money out on their credit lines because sinking home prices have left them with little or no equity.

Among the lenders taking such action is Countrywide Financial Corp., which sent 122,000 letters to customers last week telling them they could no longer borrow against their credit lines. In some cases, according to the company, the borrowers are now “upside down” — the total debt on the home exceeds the market value of the property.

I think that a lot of people who are in foreclosure on home equity lines of credit or who are in foreclosure on their first mortgage will find that the well is running dry in terms of borrowing yet more money.

Money and credit are not the same. Credit can be revoked. If you have credit cards and you are bouncing from one card to the other and drawing a balance transfer check from Peter to pay Paul, you may be in for a rude awakening. The home equity lines are being cut off. So are credit card lines.

It’s time for you to get better information on what to do to slash credit card debt without borrowing still more money. And get my 36 page free mortgage relief report on avoiding foreclosure, dealing with credit card debt without bankruptcy and more.