Posted on: 18th Jan, 2008 08:19 am
Can/will a lender reduce the credit line on an open HELOC with zero balance if the property value decreases in a soft real estate market? Do they periodically review this type of thing?
Nobody here would know that answer to your question.
You can review your HELOC closing documents that will say yes or no.
Every lender is different so the answers may vary, and the definite answer will come from the documents you signed.
You can review your HELOC closing documents that will say yes or no.
Every lender is different so the answers may vary, and the definite answer will come from the documents you signed.
I have never heard of a lender reducing your credit line. Just make sure you keep the payments on time. If you become behind on your payments, they may have the right to do so. If you are on time, they wont take the time to run a value on your property for no reason. Again, I wouln't worry about this happening.
