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Originally Posted by rayvt
Last time I looked at my HELOC, they had the right to freeze it whenever in their sole opinion they were concerned about the collateral or my ability to pay. A few years back, I was in the branch the everning that a large local company had announced massive layoffs. The branch manager told me that they had automatically frozen every HELOC for customers who worked at that company until they knew who was going to be laid off and who wasn't.
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Spooky. I would usually think that most banks are dumber than to use the language that favors them to actualy protect themselves. Must have been a reasonably smart branch manager in charge, or a local bank (rather than a clumsy behemoth).
I view a HELOC as just one of several liquidity alternatives that I generally have lined up at any given time. Usually have a chunk of cash, some CDs I could break, untapped credit cards, margin loan availability, and the HELOC. If the commode hits the windmill, at least some of these options could be tapped.
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"And Jesus spake, 'Become thou now fishers of adjustable rate mortgages'" - New Conservative Bible
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