Legal Question in Real Estate Law in Massachusetts

Equity Line of Credit

I have just received a letter from my bank saying they are lowering my Equity Line of Credit balance. They are doing this because of the lower property values. Can they just do this without any new paperwork?


Asked on 4/01/08, 7:23 pm

1 Answer from Attorneys
William McLeod McLeod Law Offices, PC

Re: Equity Line of Credit

News reports confirm that mortgage companies are pulling back lines of credit based on the declining property values. Read the terms of you contract carefully - I'm willing to bet that it allows them to do so without having to go through an expensive appraisal process.

On another note, if you are relying on your equity line of credit for day-to-day expenses, then you may want to explore your debt situation.

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Answered on 4/02/08, 10:40 am


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