Answers about Home Equity Lines of Credit and Home Equity Loans
Select from the following questions about home equity lines of credit and home equity loans.
- What is a Home Equity Line of Credit (HELOC)?
- I just received a letter from my bank advising me that they have frozen or reduced the amount of my Home Equity Line of Credit (HELOC). The letter explained that the action was taken because the value of my home had declined. Is that legal?
- I agree that the value of my home has declined but I do not think that it was a significant decline. Does the law define what constitutes a significant decline?
- I received a letter from my bank stating that they have frozen or reduced my Home Equity Line of Credit (HELOC). I have already written checks using that line of credit but the checks are still outstanding. What can I do?
- The bank reduced my Home Equity Line of Credit (HELOC) before they contacted me. Does the law require them to notify me before they reduce the credit line?
- My Home Equity Line of Credit (HELOC) was reduced or frozen. What can I do to have the credit line reinstated? What can I do to appeal the decision?
- The bank told me that I could no longer get advances from my Home Equity Line of Credit (HELOC) because the value of my home declined. The notice I received from the bank stated that I could appeal the decision by obtaining an updated appraisal. The bank indicated that I would have to pay for that appraisal. Can the bank require me to pay for the appraisal?
- The bank just reduced my Home Equity Line of Credit (HELOC) so that it is equal to the amount I have already borrowed. I am worried that if they reduce the limit any further that it may raise my payment. Is this possible?
- What is a home equity loan?