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Some Banks Freezing Lines Of Credit

The mortgage crisis has added additional changes for some homeowners with a home equity line of credit. YOUR HELOC MAY BE FROZEN! Check with your HELOC provider often to make sure your funds have not been frozen. Many bank customers are finding that their home equity lines of credit cannot be used after making large purchases. Customers with great credit and lots of equity in their homes have been hit with the HELOC freeze too. Bank Of America and Washington Mutual have setup a process for clients to appeal the decision of the bank. If you get a letter about your account being frozen or find out by surprise, take the following steps:

  1. Contact your HELOC provider immediately.
  2. Shop for another HELOC.
  3. Be ready for a new home appraisal.
  4. Negotiate a great rate

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