[Steve91T]

This morning I'm eating my eggs and toast while going through my mail. I open a B of A letter and it tells me that my $25,000 line of credit has been terminated. That pretty much ruined my breakfast.

I go online to find out that sure enough my available balance is $0.00. Long story short, the bank does these random assessments of home values and they decided that the value of my house (currently a rental) has gone down (no kidding). Because of this, they closed my account with no warning at all. I even had called them a few months ago asking how long my HELOC is good for. They told me the final withdraw date is 2016 and I can take money out, or put it back in as often as I'd like.

We were counting on that money. We currently are in the middle of renovating our home (one bathroom is gutted), and we're also going to be closing on a house in Charlotte after the holidays.

Anyway, I'm working with my local B of A to get the line of credit opened again.

I just wanted to warn everyone. This is something that I never saw coming.

Steve

[trackbird]

Seems to be a side effect of the market tanking. I've heard other stories of similar accounts just going away one day. Hope they get it sorted out. There are just too many homes under water, REALLY under water these days. I'm afraid it's going to get worse before it gets better, but maybe we're closer to the bottom than I think.

[cccbock]

As an appraiser I can tell you are in a lot of good company.

I have a friend that used to make his living renovating homes then renting them out...financing each one via a LOC with a local bank (not BOA).

One day they called him and said they needed him to come down to the bank to bring his LOC current, and give them 50 grand because one of the homes in the portfolio had fallen below the agreed value.

They were using an online automated appraisal which gave them a range and they were using the lowest possible value. They were wrong. THE BANKS MAKE MISTAKES.

Fight for your LOC. Good luck.

[Steve91T]

As an appraiser I can tell you are in a lot of good company.

I have a friend that used to make his living renovating homes then renting them out...financing each one via a LOC with a local bank (not BOA).

One day they called him and said they needed him to come down to the bank to bring his LOC current, and give them 50 grand because one of the homes in the portfolio had fallen below the agreed value.

They were using an online automated appraisal which gave them a range and they were using the lowest possible value. They were wrong. THE BANKS MAKE MISTAKES.

Fight for your LOC. Good luck.

I found out they valued my house about $60k lower than it actually is. That's one of the thing we are going to try to fight.