Your credit line might be frozen – What you need to know
The newest “thing” in the sub-prime loan crisis is this: Banks now are freezing credit lines (called HELOC’s – Home Equity Lines of Credit) because the amount borrowed (including both the HELOC and the mortgage) is exceeding the value of the home.
For example, CBS reports that Countrywide, one of the largest U.S. lenders, has frozen 122,000 HELOC’s. It will also be interesting to see what happens when the bank that gives the mortgage is different from the bank that gives the 2nd mortgage/HELOC. Who wins?
The CBSNews website had some good tips for dealing with this …read more