Some 122,000 borrowers with Countrywide home-equity lines of credit, or HELOCs, received letters in January informing them that they could no longer withdraw funds from their lines. A few months later, thousands of customers of other major lenders — including Bank of America, J.P. Morgan Chase, Citibank, SunTrust, USAA, Wachovia, Washington Mutual and Wells Fargo — also received notice that their lines had been frozen or reduced.
It’s a jolt to borrowers who have relied on their home-equity line as an emergency fund or an all-you-can-eat buffet.
I received this letter from CountryWide a few months ago & when you call and when I called and asked why they told me it was because the value of the home has declined.
I guess I should be grateful that I never had a HELOC.
When we purchased this house in 1999, we had about $50K equity. By 2005, we had nearly $500K equity. Now, in 2009, we’re on the verge of being upside down.
ack.