My lender (Chase) sent me a letter that my home equity account has been frozen do to declining home values! They probably used a computer to appraise my property and then decided to revoke it. Apparently I can argue and get the property reappraised but I think they are right
I was mortgage broker so I should have known better. I bought an investment property on a option arm from greenpoint mortgage. I used a heloc on my primary residence for the down payment. I thought that the mortgage would be neg-am for 5 years, well enough time I thought to survive any “crash” in the economy. Little did I know that if I were to make the minimum payment every month (which I did), the neg am period would reach it’s cap in only two year! Well now the property has negative equity, I can’t refinance it, and since I don’t live in it I don’t qualify for any government assistance.