4 ms·

Watch out for HELOCs in what sense? Who would loan money to a homeowner with an underwater house, not matter how much they clamor?

• deleted 5y ago
  [deleted]
• hpoe 5y ago
  People get HELOCs now, intending to flip the house sometime soon. Suddenly the house depreciates substantially in value, they still have to pay for the HELOC and the mortgage for a house that they weren't planning on holding on to and can't get rid of and now they are trapped.
  • throwdecro 5y ago
    Sounds unsustainable. If enough people do that maybe we'll see some affordable housing soon!
  • abakker 5y ago
    I don’t know about what you have seen, but a lot of of banks are not even offering new HELOCs now.