This is something I just thought about with all the softening of values going on in the west coast.
What would happen if you took out a HELOC for the maximum value of the equity on your home and your home goes down in value(due to optimistic appraisal or just market conditions)? Will/Can the banks or lenders do anything?
Just a hypothetical since I’m bored here at work today.
Foreclose on the property??? You mean, if I don’t make the payments, right? You don’t mean they’ll force a foreclosure just because the value declined, right??
No foreclosure unless there is a default…LOL…I can see it now…The jerk down the street takes a low ball offer on his house and then the bank comes and forecloses on your house…LOL…If that was standard operating procedure I think the murder rate would sky rocket.