 Quote:
Originally Posted by growing_older
Seems to me the most likely emergency requiring use of the HELOC also involves loss of my job. My understanding was that the agreements generally give the bank wide ranging powers to limit my usage of the credit line and we're seeing some of this in the market with banks freezing HELOCs in down real estate markets. My own line is well coverered by the equity in my house, even if prices fall a lot, so I think that is not going to be a problem, unless they start unilaterally freezing and exiting the HELOC business. Probably that's unlikely. Even so, I wouldn't plan to draw their attention to my loss of a job, if that's why I need to access the line.
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I had the same thoughts and concerns about using a HELOC as an emergency fund in the event of a job loss. But I've decided it's a good option, as one source of funds among others, because in the event of a job loss, it would be unlikely that the bank would know about it, but in any event, I would transfer funds from the credit line immediately upon losing my job.
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