Comments on: Countrywide suspending equity lines of credit

By: “I can’t begin to say what a hassle this notice is” «

“I can’t begin to say what a hassle this notice is” « — Sat, 30 May 2009 16:50:23 +0000

[...] we’ve talked about the chaos that ensues when a bank or credit card company fails and when a bank suddenly cuts the limits on a home equity line of credit (HELOC), and with some lively discussion I might add. Yet, as a small business owner I can’t begin to [...]

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By: Queercents » Blog Archive » Equity Line of Credit: Seek Other Financial Shelter

Wed, 03 Dec 2008 15:38:05 +0000

[...] Beach home was reduced to practically nothing and the line on one of my rental properties was suspended completely. Both notices came as a result of the decline in home values. I could argue that our house in [...]

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By: Lucy Calvillo

Lucy Calvillo — Wed, 20 Aug 2008 18:14:30 +0000

One more note, my contract states they can terminate HELOC loan if engage in fraud, do not meet repayment terms or action or inaction adversely affects the colleteral or rights in colleteral. Next it states that they can refuse to make additional extensions of credit or reduce credit limits or both if property declines significantly below its appraised value for purposes of the line. It also states that the initial agreement permits us to make changes to the terms of the agreement at specified times or upon occurance of the specified events. Heck I was not asking for additional extension of credit and they sure didn't reduce my the amount I could borrow, but instead suspended the acount all together. The homes are selling in my immediate area for well above the amount I could borrow on my HELOC account. So what gives them the right to automatic cancel my loan...

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By: Lucy Calvillo

Lucy Calvillo — Wed, 20 Aug 2008 17:47:47 +0000

I just received my letter yesterday informing me that my account has been frozen related to decline in home equity. Funny thing is, we don't owe a cent on your home. Values in area is still way above amount we could pull from home equity line of credit. Called Customer Service and would have to prove with 3 different valuations recently sold home prices in area before they will reconsider lifting suspension on my HELOC account. Yet they will not close account and reconvey deed back to us, will have to pay termination fees. Hell we paid good money upfront for this loan but they will not refund that money either. Why, should people with good credit and standing with hell alot of home equtiy built up should pay for other stupid people mistakes that took out way more loans than they could pay for in first place. I'm in for a lawsuit......Where do I sign.....

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By: Ken Underwood

Ken Underwood — Mon, 04 Aug 2008 13:37:27 +0000

HELP!!! I have a client midway through a major remodel and this has happend to her. Her house is completely gutted of a kitchen and I have a warehouse full of cabinets that I have paid for half of $12,000!!! We are supposed to install cabinets this week but I cant continue this project without payment. Can they do this? It seems to me that without a kitchen they would lose alot of value on the house.

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By: Brian Rishwain

Brian Rishwain — Sat, 02 Aug 2008 18:36:59 +0000

I am an attorney specializing in class action litigation. We are investigating potential claims against banks for unreasonably reducing or freezing HELOCs based on a purported “substantial decrease” in the value of your property as determined by some “computer model” and then requiring you to pay hundreds of dollars to obtain an appraisal to prove this computer wrong. Please contact me if you would like to discuss this issue further.

Brian Rishwain
Rishwain & Associates, Inc.
439 N. Canon Drive #200
Beverly Hills, CA 90210
brishwain@jrllp.com

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By: legallink

legallink — Sun, 29 Jun 2008 23:46:48 +0000

It could be worse… I refinanced my HELOC with CW in May of 2006. They did a “computer” appraisal for a value of $486,000. Took out the money to use as planned, got the letter suspending my HELOC… ha ha already have the money…needed to sell, find out the house declined in value some, but was inflated by the computer appraisal over $60,000 from what it should have been in May 2006. When I called to complain about their fraudulent appraisal, they offered a refinance, but then declined when they assessed my value ON THE PHONE by looking at http://www.zillow.com! I now have a house worth $100,000 less than the loan. Could be worse, but I wouldn’t waste time trying to argue with them about suspending equity lines… they will be able to establish the loss in value easily with all the short sales and foreclosures currently available as comps.

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By: Noah Sacks

Noah Sacks — Thu, 05 Jun 2008 22:22:25 +0000

HELOC Freeze Investigation

We are investigating several home equity line of credit (HELOC) lenders for their practice of freezing HELOCs based on claims of reduction in property values without obtaining actual appraisals to substantiate the decline in value. This practice may violate state and Federal law as well as the terms of HELOC policies.

If you would like more information regarding our investigation or have any information that you would like to share please contact Noah Sacks at noah@moginlaw.com or call toll free 888-557-2545.

The Mogin Law Firm, P.C. is a highly experienced Southern California class action firm. We specialize in representing a select clientele in antitrust, unfair competition, consumer protection, false advertising, investment, complex litigation and class action cases. Other law firms frequently seek our expertise.

This post may be considered legal advertising. No legal advice is offered and no attorney-client relationship or duties are created or intended. Attorneys are licensed in California.

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By: Dale

Dale — Fri, 23 May 2008 04:11:50 +0000

I pinched and saved $300k over 35 years. Made a decision to take the cash out of savings and pay off my $311k Countrywide HELOC since the interest rate was pushing 8.5 % knowing I could draw on the equity line in case of emergency. I have a high fica score (over 840) and never missed a payment or bounced a check in 35 years. Three weeks later CountryWide suspended my HELOC. Now I sit here bare naked - "no cash that is" with no cushion for emergencies. Since I have since moved and rented out the property it now is classified as an investment property with different guidlines. Now, they say the investment property equity line maximum is 65% of the property value. They say (untrue) that the total property value has decreased to 65% of what it was 1 year ago. Come on? Therefore, no equity line available. Cheap shot to a guy with excellent credit. They simply made a good guy mad. I get even by not doing business with people who treat me wrong. Yes, I would join a class action. And, definitely would not ever do business with them again. Wishing I could take those three weeks back! Dale

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By: Kendra

Kendra — Wed, 21 May 2008 00:56:34 +0000

Yep, I got the same form letter as everyone else from Countrywide. I have a zero balance on my duplex HELOC & was never late, using it only for a few months at a time then paying it off in full. I've had it about 1 year. Countrywide said that I MIGHT be considered for reinstatement of my HELOC if I could come up with either 1) 4 comps sold within 90 days and within 1 mile of my property 2) a brokers price opinion 3) a formal appraisal These documents had to reflect a minimum of a 5% increase and that was not even a guarantee! Then I asked if their LTV had changed. They told me that they WILL NOT reopen a HELOC on an investment property PERIOD. Regardless of any appraisal, comp or whatever. And no, they will not waive the $350 cancellation fee because they MIGHT reopen it someday. Hijos de putas!

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