Homeowners fight to thaw bank freeze on equity line
Picture this nightmare financial scenario: You’ve taken out a $150,000 home-equity credit line to remodel your house, you’ve already pulled out thousands to pay contractors and owe thousands more, when suddenly you get a curt letter from the bank.
Effective yesterday, it says, we’ve shut down access to your credit line. Although we haven’t physically appraised your property, an automated valuation indicates it is now worth significantly less than when we approved your application. If you wish to hire an appraiser, chosen by us but at your own expense, you can appeal our decision.