Wednesday, November 19, 2008
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Loan Modification

The Home-Equity Door Slams Shut

Posted by Moe Bedard On July - 7 - 2008

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.

Read more from the Washingyon Post

1 Response

  1. Carrie Said,

    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.

    Posted on July 7th, 2008 at 6:02 am

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