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What I have heard happening is that banks are adjusting the HELOC loan amount based on reduced market value of the home. So, if you had a $150,000 HELOC on a home that is now only worth $120,000, the bank can reduce the HELOC to 80% of the lower value.
So, whether your plan poses a problem depends on the amount of cushion/loan amount you are looking for, relative to the value of your home.
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I would not have anyone adopt my mode of living...but I would have each one be very careful to find out and pursue his own way, and not his father's or his mother's or his neighbor's instead. Thoreau, Walden
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