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April 21, 2008

Incredible Shrinking HELOC??

Logged into my bank account today to find that my line of credit had been cut down by more than half. When I called the bank they told me it was due to a "reduction in property value".

I know things ain't peachy, but I haven't noticed prices going down that much! Has anyone else had experience with challenging this type of decision? I put 40% down on my home, fer chrissakes, got a great lease on my rental unit and my credit is well above 750. What gives?!

I intend to go crying to the bank about this but wonder if anyone else has had this happen to them recently...? And if so what'd you do?

Posted by tyca at 8:49 PM | Comments (27)
Categories: Mortgage

Comments

Marketplace Money had a segment on this very topic on last week's program, you can subscribe to the podcast for free on Itunes and listen to it.

Posted by: vanburenproud at April 21, 2008 9:08 PM

the banks models are looking for a 30-40 percent drop in brooklyn prices. they are using florida and california as a baseline from what i understand. they should have called you before they did it and given you a heads up

Posted by: guest at April 21, 2008 11:18 PM

Ah, but if they had called I would have written myself a big fat check and maxed out the line of credit, so that probably wouldn't work too well for them as a business model.

Posted by: tyca at April 22, 2008 6:35 AM

there was a big article about this in NYT the other day.

Posted by: guest at April 22, 2008 10:44 AM

What bank?

Posted by: guest at April 22, 2008 11:02 AM

Hey dumb fucking ass! This is the end of the free ride! Wew are in a massive Mutant Real Estate Bubble and the banks want out.

What do you think?! Housing prices was going up for ever! This why we have 4.009 gas and I'm glad the banks are getting assraped!

The next leg of this shit is a nice crash on Wall street. Maybe in May when a large bank goes Bankrupt!

Party on assholes!

The What

Someday this war is gonna end!!!!!!!!!!!!!

Posted by: guest at April 22, 2008 3:16 PM

Hey dumb fucking ass! This is the end of the free ride! We are in a massive Mutant Real Estate Bubble and the banks want out.

What do you think?! Housing prices was going up for ever! This why we have 4.009 gas and I'm glad the banks are getting assraped!

The next leg of this shit is a nice crash on Wall street. Maybe in May when a large bank goes Bankrupt!

Party on assholes!

The What

Someday this war is gonna end!!!!!!!!!!!!!

Posted by: guest at April 22, 2008 3:16 PM

aw man! swear-word-man is back! i liked swear-word-man most when he made less swear words. oh well, so be it.

Posted by: guest at April 22, 2008 3:30 PM

I'm happy the What is back, swear words or no. This place was getting boring as hell. And we were getting overrun by Biff, Daveinbedstuy and their ilk.

Posted by: guest at April 22, 2008 3:34 PM

I'm happy the What is back, swear words or no. This place was getting boring as hell. And we were getting overrun by Biff, Daveinbedstuy and their ilk.

Posted by: guest at April 22, 2008 3:35 PM

Dear What,

I know I'm going to regret stepping into this fray, but what is it about OP's conduct that earns him the title "dumb fucking ass"? He didn't over leverage himself. He put a large DP on his house, kept his credit good, pays his loans and there does not seem to be any local data that would support cutting back his HELOC. If you are trying to say that this is a case of a bank just plain freaking out and getting so scared of its risk portfolio that it can no longer make rational credit underwriting decisions, that would be a valid point and is probably what is going on here. The banks finally learned that they went overboard in extending credit and now are going overboard to correct the mistake. And if you need to swear and cuss to make your point, so be it. But what did OP do to get your goat?

Posted by: slopefarm at April 22, 2008 3:38 PM

Well slopefarm, I want you to read this.

Experimental economics

http://en.wikipedia.org/wiki/Experimental_economics

Experimental economics is a field of economics which emerged in the 1990's [1] and uses experimental methods to evaluate theoretical predictions of economic behavior. In contrast to traditional economic empiricism, which relies on observing decisions in natural environments, experimental economics seeks to control causative factors in order to provide better ceteris paribus comparisons between situations.

Wrap you fucking mind around this CONcept! And after you are finished read this.

http://en.wikipedia.org/wiki/Austrian_School

The Austrian School, also known as the “Vienna School” or the “Psychological School”, is a school of economic thought that advocates adherence to strict methodological individualism. As a result exponents of the Austrian School hold that the only valid economic theory is logically derived from basic principles of human action

Human action (Fucking Assholes) who think there are Donald Trump!

See you and others think everything is OK, NOT! Without credit our economy is in the fucking stone age. This asshole is crying that her HELOC was cut off! Man we are about to go thru a depression (Yes a fucking depression asshole) and I have to suffer for the mistakes of people!!!!!

That why I'm pissed off asshole, so fuck you and any other asshole who think every thing is OK!

The What (Stop defending stupidity)

Someday this war is gonna end...

Posted by: guest at April 22, 2008 3:54 PM

hey dude

It's the bank that was stupid, not me, why should I suffer for their fuck-ups? If they've overextended themselves with risky lending why should I suffer for it? I've been super-conservative.

I am not defending anyone (read: the bank) for their stupidity in making poor lending decisions and neither is anyone else around here. Except, perhaps, YOU.

still glad to see you around, The What. Love and kisses!

Posted by: tyca at April 22, 2008 4:39 PM

I think what the guy is trying to say is that everybody who was going to be rich overnight and convinced mom and dad to lend them the 20 percent to buy has fueled a 2000 tech like bubble in the housing market. I agree, too many Donald Trumps out there. Brooklyn is cool but not an island like Manhattan.

Posted by: guest at April 22, 2008 4:46 PM

The What's Lithium prescription needs refilling. Or maybe he's just bitter that his peeps in East NY are getting foreclosed.

I'm sorry that there were no "asshat" references. How do you pronounce "asshat?" Is it ass hat or as shat? As shat the What...

Posted by: guest at April 22, 2008 4:54 PM

Actually taking out a heloc is not so smart in a recession. Bank is smart for reigning it in.

Posted by: guest at April 22, 2008 4:55 PM

Hey Tyca, I like to ask you one question. What was you going to do with the HELOC? Was you using it to live day by day or was you going to make a investment?

If not then, why be in debt? Why have if you are not using it?

Plus the bank was not stupid, you and others are. They loan money to asshats and turn them into debt slaves. Interest is the chains that bind the economy! It robs people of future earnings. Plus combined with Inflation that monster is very powerful! 3.59 a gallon for gas, I know you assfucks ride the train but, you still have to eat.

BTW When I pull into a gas station, it's fucking empty! People haning out on Friday, its fucking empty! We are in a bad situation.

The What

Someday this war is gonna end...

Posted by: guest at April 22, 2008 5:00 PM

Hey Tyca, I like to ask you one question. What was you going to do with the HELOC? Was you using it to live day by day or was you going to make a investment?

If not then, why be in debt? Why have if you are not using it?

Plus the bank was not stupid, you and others are. They loan money to asshats and turn them into debt slaves. Interest is the chains that bind the economy! It robs people of future earnings. Plus combined with Inflation that monster is very powerful! 3.59 a gallon for gas, I know you assfucks ride the train but, you still have to eat.

BTW When I pull into a gas station, it's fucking empty! People haning out on Friday, its fucking empty! We are in a bad situation.

The What

Someday this war is gonna end...

Posted by: guest at April 22, 2008 5:02 PM

Pardon me for interrupting this gone-ignorant conversation to state how annoyed I have become with the juvenile trolls who have totally hijacked this site. Most veteran subscribers long ago concluded that Brownstoner has clearly gone down the tubes since the main portions of it were hijacked by developers, real estate agents, spammers and trolls.

However, in spite of all the other changes to the site, it used to be that the Forum, at least, had managed to remain a place of civility and reasonably intelligent discussion for those property owners and renters sincerely interested in making property improvements but not interested in a whole lot of b.s. discussions by emotionally wounded, socially pathetic, out-of-work, out-of-a-life cyberjunkies. Nowadays it is getting so people can't even post a simple question or share information on the Forum without some fool taking the time to display his or her foolishness.

What a sad development indeed! Mr. B, it is time to impose registration requirements.

Posted by: Brooklynista at April 22, 2008 5:07 PM

Oh BTW Tyca a HELOC is CALLABLE!! Yep get started on paying the balance! If you spend that money on bullshit like a Flat Screen, Vacation or Ass implants the bank can make you sell that shit to recoup their money!

I bet you the used Check Point (Comps Software) and found out you are UNDERWATER!!!!!!!!!!!! Thats why Boo fucking Hoo!

"The What's Lithium prescription needs refilling. Or maybe he's just bitter that his peeps in East NY are getting foreclosed."

Nope assfuck, I''m worried about my "peeps" are getting foreclosed in 11238. Heh heh.

The What (What Meds?)

Someday this war is gonna end...

Posted by: guest at April 22, 2008 5:09 PM

"had managed to remain a place of civility and reasonably intelligent discussion for those property owners and renters sincerely interested in making property improvements but not interested in a whole lot of b.s. discussions by emotionally wounded, socially pathetic, out-of-work, out-of-a-life cyberjunkies. Nowadays it is getting so people can't even post a simple question or share information on the Forum without some fool taking the time to display his or her foolishness."

Hey Trya you have some company. Maybe you can share on your foreclosures together. LMMFAO Fuck all of you!

"What a sad development indeed! Mr. B, it is time to impose registration requirements."

Brownstoner can't get this fucking site to work properly!

The What (HA HA)

Someday this war is gonna end...

Posted by: guest at April 22, 2008 5:14 PM

Someplace is empty on Friday?! I'd like to know where that is...

Oh no wait, I don't want to go there because the only people there will be asshats.

I was planning to use it for exterior repairs, so things don't get worse and cost me more later. Like after the water damage really DOES decrease the value of my house.

Posted by: tyca at April 22, 2008 5:27 PM

My ass is quite fine without the implants, by the way.

Posted by: tyca at April 22, 2008 5:53 PM

Glad you haven't lost your sense of humor, tyca.

Posted by: slopefarm at April 22, 2008 9:04 PM

when i see used ass implants in foreclosure, then i'll know the economy is in trouble.

Posted by: slick at April 22, 2008 11:50 PM

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