Yes, the bank can be called due or closed or limit reduced as the bank chooses. When/if they do it, it will be at the worst possible time for you. In our town a major employer announced a big layoff. The banks froze EVERY HELOC immediately. They unfroze them one at a time for people who came in and showed that they had not been laid off.
I'm in Texas and my understanding is Helocs are 2nd position here. Are you saying the bank is likely to shut it down if they feel it's being misused or credit scores are not good? We have excellent credit and very little debt, so I would hope that is not something we should be concerned about
I have several clients in Texas and they have their own rules no doubt. Just know you can have a 1st or 2nd pos heloc. Lines of credit in second position can be called due or closed or limit reduced as the bank chooses. It’s not likely so I wouldn’t necessarily be concerned, you should just know that it is a possibility. More of a possibility compared to a 1st position. Not meaning to alarm just sharing the facts when I was asked that specific question from a viewer. Thank you for the feedback.
I know several banks who offer 1st position in Texas. You do have to ask the right questions tho. I also know a 2nd position can work well also. I will do more examples using a 2nd position.
Yes, the bank can be called due or closed or limit reduced as the bank chooses.
When/if they do it, it will be at the worst possible time for you.
In our town a major employer announced a big layoff. The banks froze EVERY HELOC immediately. They unfroze them one at a time for people who came in and showed that they had not been laid off.
That’s heart breaking. The goal has to be to become your own bank and leverage these institutions the same as they leverage us. Take back control.
Great information!
We appreciate the feedback! Thanks for tuning in!
I'm in Texas and my understanding is Helocs are 2nd position here. Are you saying the bank is likely to shut it down if they feel it's being misused or credit scores are not good? We have excellent credit and very little debt, so I would hope that is not something we should be concerned about
I have several clients in Texas and they have their own rules no doubt. Just know you can have a 1st or 2nd pos heloc. Lines of credit in second position can be called due or closed or limit reduced as the bank chooses. It’s not likely so I wouldn’t necessarily be concerned, you should just know that it is a possibility. More of a possibility compared to a 1st position. Not meaning to alarm just sharing the facts when I was asked that specific question from a viewer. Thank you for the feedback.
I know several banks who offer 1st position in Texas. You do have to ask the right questions tho. I also know a 2nd position can work well also. I will do more examples using a 2nd position.