friar1610
Thinks s/he gets paid by the post
- Joined
- Jun 27, 2002
- Messages
- 1,639
I am thinking of relocating and have been looking at various options for financing a new house for an interim period in the event my current house doesn't sell prior to closing on the new one. (I own my current house outright; I plan to own a new one outright once this one sells.)
In reviewing the USAA Savings Bank web site, I see quite a few angry posts from the 2009-2011 time frame when USAA zeroed out a lot of lines of credit. According to most of the posts, the revaluation of home values was done arbitrarily (without benefit of an appraisal) and with no advance notice. Of course, I understand that when home values drop and the line of credit is premised on the percentage of a certain value, the line of credit must also drop. But zeroing them out seems drastic.
Does anyone know if other banks did the same thing during the worst of the housing crisis? I'd certainly like to go with a bank/credit union that won't do this sort of thing. Imagine thinking that you had $X in credit and planning to use that to purchase a new house only to have it zeroed out a day or two before closing!
In particular, if anyone has any experience with NFCU or PenFed on HELOCs I'd appreciate your insights.
In reviewing the USAA Savings Bank web site, I see quite a few angry posts from the 2009-2011 time frame when USAA zeroed out a lot of lines of credit. According to most of the posts, the revaluation of home values was done arbitrarily (without benefit of an appraisal) and with no advance notice. Of course, I understand that when home values drop and the line of credit is premised on the percentage of a certain value, the line of credit must also drop. But zeroing them out seems drastic.
Does anyone know if other banks did the same thing during the worst of the housing crisis? I'd certainly like to go with a bank/credit union that won't do this sort of thing. Imagine thinking that you had $X in credit and planning to use that to purchase a new house only to have it zeroed out a day or two before closing!
In particular, if anyone has any experience with NFCU or PenFed on HELOCs I'd appreciate your insights.