Comments on: Banks Freeze HELOCs

By: Lee

Lee — Mon, 10 Mar 2008 17:29:00 +0000

Yes some banks are freezing HELOCs but at the same time some banks are making it easier for their client to get HELOC if they are using the Money Merge Account. Ufirst has been very proactive in helping those clients that have found their HELOC frozen by countrywide. As of right now no other banks have frozen any mma clients HELOCs.
The focus should be on the banks and financial institutions that are complaining about the state of affairs while at the same time giving their CEOs $400,000,000. bonus’ (i.e. citi group and countrywide etc.) The hearings are going on right now on cspan. Warning have a puke bucket handy.

By: Anonymous

Anonymous — Mon, 25 Feb 2008 10:37:00 +0000

I am curious to see how this “freeze” is going to affect those who bought the Money Merge Account (using HELOC to pay off mortgage fast).

By: One Frugal Girl

One Frugal Girl — Sat, 16 Feb 2008 17:44:00 +0000

@jerry — I totally agree. In an emergency the last thing you want to think about is going into debt. An emergency fund is definitely the safest way to go.

@savingdiva — I would actually prefer it if banks never gave maxed out borrowers HELOCs in the first place, but I do understand how lenders have gotten themselves into sticky situations from which they now need to protect themselves.

By: SavingDiva

SavingDiva — Thu, 14 Feb 2008 15:29:00 +0000

I personally think this is great! It's a way for banks to limit the trouble people can get themselves into.

Full disclosure: I don't own real estate, so I don't have a mortgage or a HELOC.

By: Jerry

Jerry — Thu, 14 Feb 2008 11:21:00 +0000

I have heard many people state that they do not need an emergency fund precisely because they could access a HELOC if needed! This news certainly leads to the demise of that mindset. People need some insurance that the money will be there if needed, and that only comes with a well-stocked emergency fund.
Jerry