Lenders slam the door on home-equity lines of credit

How can they get away with this...both parties signed a contract..you can't change it later on..if the borrower decided to try to change the rules you think the bank would let them?

As usual Sun Sentinel you are writing about something that has been happening for almost a year..already saw this coming in the blogs MONTHS ago..advised a friend of mine to pull her 200K equity line out..she gave me a big hug and put the money into investments..she will be walking away for her home and using the STUPID lenders give away to buy another home..in her mom's name!

Don't feel sorry for the lender who now will be stuck with a home that is worth-less!

the great depression is coming. There are to many similarities for this to be a bump in the financial world as we are led to believe.
The US as led the world and now we are paying for it. Our SS has been stolen from us, then medicare added to payroll taxes which they use for the budget, increases ss qualifications from 13 qtrs to 10 years, they increased the age limits, and we run federal deficits every year. We are in big trouble as a nation but don't worry because we have the baddest, meanest military on earth.

This happened to me last month. Glad to know it is not just because the bank thinks i am a deadbeat

Laughing wrote:

As usual Sun Sentinel you are writing about something that has been happening for almost a year..already saw this coming in the blogs MONTHS ago..advised a friend of mine to pull her 200K equity line out..she gave me a big hug and put the money into investments..she will be walking away for her home and using the STUPID lenders give away to buy another home..in her mom's name!
Don't feel sorry for the lender who now will be stuck with a home that is worth-less!

The problem is that these greedy bankers have now begun to personally sue all the borrowers who walked away. Many are obtaining what are known as deficiency judgements, dragging people into court, slamming them with legal fees, and attaching their wages, assets, etc., and virtually destroying their credit ratings. This is happening to 2 people that I know personally, one near Miami and the other one near Tampa. The banks are going to try just about anything they can now to recover the funds they lost. This is gonna get down and dirty really soon.

Laughing, does your friend drive her Lexus (that she paid for by stiffing the lender) to the health clinic so that medicaid can pay for her health care? Too many people trying to beat the system, too much fraud and too much greed are destroying this country.

Is that a God-Awful hair piece he is wearing?

Tim wrote:

How can they get away with this...both parties signed a contract..you can't change it later on..if the borrower decided to try to change the rules you think the bank would let them?

It is in the fine print of your equity line agreement that they have the right to freeze/change etc. line agreement.

john wrote:

the great depression is coming. There are to many similarities for this to be a bump in the financial world as we are led to believe.
The US as led the world and now we are paying for it. Our SS has been stolen from us, then medicare added to payroll taxes which they use for the budget, increases ss qualifications from 13 qtrs to 10 years, they increased the age limits, and we run federal deficits every year. We are in big trouble as a nation but don't worry because we have the baddest, meanest military on earth.

Yeah, one doesn't hear much about the squandered money the Pentagon wastes every year. Nor about the industries that feed on the Pentagon. The military needs serious oversight. However, anyone attempting to implement intensive scrutiny will certainly endanger his reputation and posibly his life.

Greed=Stupidity=Greed=Stupidit y
And on and on and on.

I am seeing this as well. I have been hearing of it for about several months now.

Look everyone, I have said that times were going to be tough. This is not the end of the world. Start taking a look around at what you really don't need in your life.

The credit market is going to get tighter. I like our Fed President but I don't think he is going to change Bank Exe's minds. If he could, it would of happen with the measures he has been putting in place. But even with these measures the tighting continues.

Banks are doing weird things with this tighting. I know being a Real Estate, Property, & Construction Accountant. I have seen it happen several times this week alone.

I am going to tell you guys that worrying and panic is not going to help. I have reduced my lifestyle and to tell you the true I am happier now then when I had more. I save more money now too.

Changes are on the way. We are all together in this now. You have friends going though something like this, be their to support them.

Having Credit is not everything. Look at how many errors their are in credit reports anyway. The error on on the part of the reporting agengy most of the time and they expect you to fix their mistakes. My Point is the whole system from the Banks doing the lending to the people borrowing are in trouble now. What good is having good credit when we are entering a time that the money to lend will be so hard to get your credit does not matter anyway.

I personally could careless about having credit. I'm saving enough reducing my life style to self finance what I need.

Try thinking of it this way.

carl wrote:

This happened to me last month. Glad to know it is not just because the bank thinks i am a deadbeat

This is also happening with credit cards too! Especially American Express! They are reviewing and cutting many peoples credit lines. Bye, Bye, ECONOMY, Especially one that is such credit and DEBT based as ours. However WALL STREET is still reporting good news indicators, about the ECONOMY! I guess they must get THEIR NEWS from different places than most people! LOL!

John wrote:

<quoted text>
It is in the fine print of your equity line agreement that they have the right to freeze/change etc. line agreement.

They also can change your interest rate on CREDIT CARDS, if you are late with any other creditors. It is called UNIVERSAL DEFAULT! I guess the people SURPRISED by this were the same ones that took out ARMs, and did not realize the interest rate would change!

GOOD Their Loaning against DEVALUED JUNK.........

DemLover wrote:

<quoted text> The problem is that these greedy bankers have now begun to personally sue all the borrowers who walked away. Many are obtaining what are known as deficiency judgements, dragging people into court, slamming them with legal fees, and attaching their wages, assets, etc., and virtually destroying their credit ratings. This is happening to 2 people that I know personally, one near Miami and the other one near Tampa. The banks are going to try just about anything they can now to recover the funds they lost. This is gonna get down and dirty really soon.

Their credit rating was destroyed the moment they missed those payments and walked away. Your acquaintances might as well go all out and file bankruptcy because that's how they'll be treated by their creditors. One court date to get it all out of the way.

Bitch because they lent too much to unqualified borrowers and foreclosed on them.....now bitch because they cut credit off to prevent people from drawing down on their credit lines more than they can afford and then being foreclosed on.....some people just are never happy!

that is what got homeowners in trouble in the first place. borrowing against their homes to buy expensive cars, vacations, clothes and eating out, that is the south florida way.

Max out yo credit cards an move to da Caribbean, change what you got into Euros and live large in a 3rd World Country.......

Wat dey gonna do den Willis

Sean T Wright wrote:

I am seeing this as well. I have been hearing of it for about several months now.
Look everyone, I have said that times were going to be tough. This is not the end of the world. Start taking a look around at what you really don't need in your life.
The credit market is going to get tighter.

I heard on the radio this afternoon that people with really good credit (excellent range) are getting offers thrown at them. If you consider that the banks have two ways to maintain their reserve ratio,(1) increase cash against riskier loans, or (2) increase the number of good loans so that the bad loans are a smaller percentage; it's to be expected.

DemLover wrote:

<quoted text> The problem is that these greedy bankers have now begun to personally sue all the borrowers who walked away. Many are obtaining what are known as deficiency judgements, dragging people into court, slamming them with legal fees, and attaching their wages, assets, etc., and virtually destroying their credit ratings. This is happening to 2 people that I know personally, one near Miami and the other one near Tampa. The banks are going to try just about anything they can now to recover the funds they lost. This is gonna get down and dirty really soon.

Oh well! This is as good as time as any to declare bankruptcy! Credit can be built up again in a few years no biggies