Comments on: Fed Attempts to Break the Ice off Frozen HELOCs http://www.californiamortgagerate.com/californiacurrent/fed-attempts-to-break-the-ice-off-frozen-helocs/ Up to Date Rate Info and More | California Current Sat, 11 Feb 2012 14:13:00 +0000 http://wordpress.org/?v=2.3.2 By: Max Your HELOC and Stash the Cash – Is this Dangerous Advice? | California Current http://www.californiamortgagerate.com/californiacurrent/fed-attempts-to-break-the-ice-off-frozen-helocs/#comment-172 Max Your HELOC and Stash the Cash – Is this Dangerous Advice? | California Current Sun, 09 Nov 2008 19:28:11 +0000 http://www.californiamortgagerate.com/californiacurrent/fed-attempts-to-break-the-ice-off-frozen-helocs/#comment-172 [...] in August, I wrote a bit about the problem of Frozen HELOCs and much of the response was how to avoid this frustrating problem. Now, this [...] […] in August, I wrote a bit about the problem of Frozen HELOCs and much of the response was how to avoid this frustrating problem. Now, this […]

]]> By: Home Equity Loan Shortage Causes Trouble Beyond Housing Industry | California Current http://www.californiamortgagerate.com/californiacurrent/fed-attempts-to-break-the-ice-off-frozen-helocs/#comment-115 Home Equity Loan Shortage Causes Trouble Beyond Housing Industry | California Current Wed, 24 Sep 2008 04:45:28 +0000 http://www.californiamortgagerate.com/californiacurrent/fed-attempts-to-break-the-ice-off-frozen-helocs/#comment-115 [...] month, I mentioned these Frozen HELOCs a bit and some readers also shared their personal encounters with these disappearing funds. But [...] […] month, I mentioned these Frozen HELOCs a bit and some readers also shared their personal encounters with these disappearing funds. But […]

]]> By: Heindrick http://www.californiamortgagerate.com/californiacurrent/fed-attempts-to-break-the-ice-off-frozen-helocs/#comment-98 Heindrick Mon, 08 Sep 2008 15:27:08 +0000 http://www.californiamortgagerate.com/californiacurrent/fed-attempts-to-break-the-ice-off-frozen-helocs/#comment-98 Craig: Well, at the time of the freezes, it seemed as if lenders were doing so on quite a broad generalization. It seemed as if the on-time credible consumers were getting sucked into the mix simply because they were in an area deemed a "declining market". As you have read, and from the stories I have heard - its the counterproductive effect that these Freezes have had that really irritate. The whole point of freezing a HELOC is to avoid further risk, but those in medical debt trouble or in the middle of home repairs stand to suffer severely. As a result, they are stuck in this financial bind ONLY because they have had their HELOCs frozen. I understand the point in freezing HELOCs because of declining equity - what I don't understand is when you end up putting consumers at risk BECAUSE of this freeze. Ali: Thanks for sharing with us Ali. This is a severe example of the kind of trouble these HELOC freezes have caused. There has to be a better way of limiting the lender's risk, and unfortunately freezing a HELOC so freely can often lead to consequences like yours. Ali, I frequent a website www.consumerist.com - they are an internet website where consumers fight back. Their tag line and motto is "Shoppers Bite Back". I know during the initial freezes in the beginning of 2008, many people submitted their stories to them. I suggest you let them know your situation and what you have gone through. Occasionally, they produce tremendous results because of their online following and community of consumers who have had similar experiences. Ali, I know your troubles aren't over yet - so I really hope you the best of luck. It's an unfortunate situation, but there are countless people who have since suffered in a similar fashion. Again, thanks for sharing your personal story with us. Craig: Well, at the time of the freezes, it seemed as if lenders were doing so on quite a broad generalization. It seemed as if the on-time credible consumers were getting sucked into the mix simply because they were in an area deemed a “declining market”.

As you have read, and from the stories I have heard - its the counterproductive effect that these Freezes have had that really irritate. The whole point of freezing a HELOC is to avoid further risk, but those in medical debt trouble or in the middle of home repairs stand to suffer severely. As a result, they are stuck in this financial bind ONLY because they have had their HELOCs frozen.

I understand the point in freezing HELOCs because of declining equity - what I don’t understand is when you end up putting consumers at risk BECAUSE of this freeze.

Ali: Thanks for sharing with us Ali. This is a severe example of the kind of trouble these HELOC freezes have caused. There has to be a better way of limiting the lender’s risk, and unfortunately freezing a HELOC so freely can often lead to consequences like yours.

Ali, I frequent a website http://www.consumerist.com - they are an internet website where consumers fight back. Their tag line and motto is “Shoppers Bite Back”. I know during the initial freezes in the beginning of 2008, many people submitted their stories to them. I suggest you let them know your situation and what you have gone through. Occasionally, they produce tremendous results because of their online following and community of consumers who have had similar experiences.

Ali, I know your troubles aren’t over yet - so I really hope you the best of luck. It’s an unfortunate situation, but there are countless people who have since suffered in a similar fashion. Again, thanks for sharing your personal story with us.

]]> By: Ali http://www.californiamortgagerate.com/californiacurrent/fed-attempts-to-break-the-ice-off-frozen-helocs/#comment-97 Ali Mon, 08 Sep 2008 08:31:49 +0000 http://www.californiamortgagerate.com/californiacurrent/fed-attempts-to-break-the-ice-off-frozen-helocs/#comment-97 I had a HELOC that was frozen in February of 2008. I was using this HELOC to fix a property that I bought last year and was DEAD IN THE MIDDLE OF the project. I had just finished demolition of pretty much the whole houe and started new construction. They froze the HELOC at the worst time possible. Because of this, I have had to suck all my savings to keep the project going so that could finish it. But it dragged out the project till now, where Im still not finished. This is when I have already drained my entire 401K, Savings, sold all my stocks and borrowed about $30k from my family! I missed payments on my primary residence and this house both last month! If I knew that thy would freeze the HELOC, I would have NEVER started the project and instead just rented that house as it was, and its rent would have come close to covering the payments! I had a HELOC that was frozen in February of 2008. I was using this HELOC to fix a property that I bought last year and was DEAD IN THE MIDDLE OF the project. I had just finished demolition of pretty much the whole houe and started new construction. They froze the HELOC at the worst time possible. Because of this, I have had to suck all my savings to keep the project going so that could finish it. But it dragged out the project till now, where Im still not finished. This is when I have already drained my entire 401K, Savings, sold all my stocks and borrowed about $30k from my family! I missed payments on my primary residence and this house both last month!

If I knew that thy would freeze the HELOC, I would have NEVER started the project and instead just rented that house as it was, and its rent would have come close to covering the payments!

]]> By: Craig http://www.californiamortgagerate.com/californiacurrent/fed-attempts-to-break-the-ice-off-frozen-helocs/#comment-67 Craig Thu, 28 Aug 2008 17:27:39 +0000 http://www.californiamortgagerate.com/californiacurrent/fed-attempts-to-break-the-ice-off-frozen-helocs/#comment-67 "Lenders can’t generalize the freeze of HELOCs for 'broad geographic areas'" So basically before this, the bank could freeze any one's HELOC in a specific area if the values are dropping, no matter what the individual situation? That just doesn't seem right and it's a horrifying reality for all of us living in California. Everyone knows the values are dropping here. “Lenders can’t generalize the freeze of HELOCs for ‘broad geographic areas’”

So basically before this, the bank could freeze any one’s HELOC in a specific area if the values are dropping, no matter what the individual situation?

That just doesn’t seem right and it’s a horrifying reality for all of us living in California. Everyone knows the values are dropping here.

]]> By: Janice http://www.californiamortgagerate.com/californiacurrent/fed-attempts-to-break-the-ice-off-frozen-helocs/#comment-66 Janice Thu, 28 Aug 2008 17:22:43 +0000 http://www.californiamortgagerate.com/californiacurrent/fed-attempts-to-break-the-ice-off-frozen-helocs/#comment-66 We have a HELOC, but it hasn't gone into a freeze. Let's just hope this ensures that doesn't happen. Joe that is really sad. When I look at our situation it seems minimal compared to this. We took out the HELOC to fix up our house and add a room for the new baby. I hope things get better for your brother and his wife. --Janice We have a HELOC, but it hasn’t gone into a freeze. Let’s just hope this ensures that doesn’t happen.

Joe that is really sad. When I look at our situation it seems minimal compared to this. We took out the HELOC to fix up our house and add a room for the new baby. I hope things get better for your brother and his wife.

–Janice

]]> By: Joe http://www.californiamortgagerate.com/californiacurrent/fed-attempts-to-break-the-ice-off-frozen-helocs/#comment-65 Joe Thu, 28 Aug 2008 17:19:14 +0000 http://www.californiamortgagerate.com/californiacurrent/fed-attempts-to-break-the-ice-off-frozen-helocs/#comment-65 It's about time somebody did something! My brother had a HELOC that the bank put a freeze on. They were using the money to pay for some medical treatment for his wife and now that that money is gone, they are going into debt. It doesn't seem fair as they make their loan payments regularly... Hopefully this help. Great post! It’s about time somebody did something! My brother had a HELOC that the bank put a freeze on. They were using the money to pay for some medical treatment for his wife and now that that money is gone, they are going into debt. It doesn’t seem fair as they make their loan payments regularly… Hopefully this help. Great post!

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