1

HELOC and Emergency Savings

Submitted by CF on October 16, 2007 - 05:29.

Philip, thanks for your reply. I hadn't thought of that scenario, but it brings a question to mind. In my case, I have a $40,000 balance on a HELOC with a max of $75,000. If my lender wanted out of the HELOC business, what would happen? I'm guessing they'd have to sell the loan or something, but in that process, could they drop the total credit from $75,000 down to my balance? Obviously they won't walk away from $40K, but how would they get their money, yet not allow me to still use the HELOC in case of emergency? Thanks for your input - just want to be prepared, because, as you say, the time that money becomes unavailable is generally when you need it the most.

Reply

Please keep the comments civil and on-topic. Abusive or inappropriate comments will be removed without warning. By posting here you agree to our terms of use.

The content of this field is kept private and will not be shown publicly.
If you leave a link (include the http:// part), your name will be linked to your homepage.

You may use some HTML for formatting: <strong>bold text</strong>, <em>italics</em>, and <a href="">for links</a>. Empty lines are automatically converted to paragraph breaks.

Or click the link above that says 'enable rich-text' to use the fancy editor.

Captcha
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
1 + 13 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.

Have more to say? Join the discussions at Wise Bread's Finance and Frugality Forums.

Finance Blogs - Blog Top Sites