Message to homeowners: If you have a line of credit or Home Equity (HELOC) and are even considering hitting it, you better hurry up and tap that thing.
Wait to long, and you may receive a nastygram from your Bank/Broker telling you "Too Late!"
At least, that’s what happened to "several thousand" Morgan Stanley clients. The nations second largest brokerage firm, after a periodic review, stated:
"Consistent with the terms of the HELOC, or home-equity line of credit, Morgan Stanley periodically reassesses client property values and risk profiles,” said Christine Pollak, a Morgan Stanley spokeswoman in New York. "A segment of clients was recently notified of a change in the status of their home equity line of credit or HELOC due to a change in the value of their property and/or their credit profile.”
Its good to see that lenders have become more proactive about risk, albeit 5 years to late.
There’s a lesson in this to home owners who were thinking about using this line of financing: If you have those HELOC checks your lender sent you, better hurry up abnd use them before its too late!
Morgan Stanley Said to Freeze Client Home-Equity Credit Lines
Bloomberg, Aug. 5 2008