Hoop
19-02-2008, 01:45 PM
I can remember having a facility years ago where I could draw money out of a mortage up to a certain limit, kind of like having an overdraft. Don't know how common it is in NZ nowdays.
However in the USA, this facility called Home Equity Line of Credit (HELOC) is commonly used, and it seems many home owners use this faciity for their day to day spending such as to buy groceries, pay power bills etc.
There has been an increase lately in blogs about people complaining that there HELOC have been frozen, without warning, and without reason.
One blog was from a chap that had nearly paid of his mortgage so his HELOC was very large, he received a letter telling him that his HELOC was frozen.
Many other blogs are from people who have or recommend people who are thinking of buying to pull out as much money as needed for the future, quickly before their banks freeze their HELOC. Some commentators are expecting that there will be a sudden rush of money drawn out of the banking system within the next week or so when more US citizens become aware of what's happening.
Try Googling Banks freeze HELOCs ....very interesting reading.
The US Media have been slow to pick up on this one, hence the blogging.
The reason for the freezing of HELOC is blamed on the falling prices within the US housing market.
This maybe something home owners and property investors/ landlords in NZ should be made aware of..just in case...
However in the USA, this facility called Home Equity Line of Credit (HELOC) is commonly used, and it seems many home owners use this faciity for their day to day spending such as to buy groceries, pay power bills etc.
There has been an increase lately in blogs about people complaining that there HELOC have been frozen, without warning, and without reason.
One blog was from a chap that had nearly paid of his mortgage so his HELOC was very large, he received a letter telling him that his HELOC was frozen.
Many other blogs are from people who have or recommend people who are thinking of buying to pull out as much money as needed for the future, quickly before their banks freeze their HELOC. Some commentators are expecting that there will be a sudden rush of money drawn out of the banking system within the next week or so when more US citizens become aware of what's happening.
Try Googling Banks freeze HELOCs ....very interesting reading.
The US Media have been slow to pick up on this one, hence the blogging.
The reason for the freezing of HELOC is blamed on the falling prices within the US housing market.
This maybe something home owners and property investors/ landlords in NZ should be made aware of..just in case...