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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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So Chase froze my HELOC
Yeap, noticed my HELOC had $0 available balance when I logged into my Chase account. Didn't even have any money drawn from it either. I also put 20% down on my house and they loaned out the additional 10%.
I called and asked why and she said "well due to the Long Island market conditions... bla bla bla".
So I cut her off right there.  I first told her "You realize that since I bought the house I added 325 square feet.... AND I paid cash for it."
So she said "Well sir you can gladly file an appeal by buying your own appraisal.... "
LOL I cut her off again. I told her, "You honestly think I am going to file an appeal by PAYING for my own appraisal?". I can go to any bank out there and not only will they beg for my business, they will pay for any appraisals on the house as part of the new application process.
I told her "where do I go to close this because I want your Chase lien off my title". She said I had to pay some $41.28 "recording fee" with the county for a lein release. I guess this is a Nassau County fee? I wish I could get this waived.
I really don't care that they froze my account since I know I can take my business elsewhere.
And the fact that I added the extra square feet pretty much means they shot themselves in the foot on this one. I would have faxed them the CO for my extension if they were willing to unfreeze the account but screw them at this point.
I have been looking for a reason to fire Chase on this (for past bank screwups Chase has given me) and this gives me perfect reason.
Oh and for others that have a Chase HELOC, the woman told me they are only loaning up to 75% LTV now in Long Island. So if you have a HELOC with them and are at this LTV, you will probably get a letter too.
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Posted 8/4/08 10:30 AM  |
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Prudential Douglas Elliman Real Estate
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jklein1323
LIF Adolescent
Member since 11/06 847 total posts
Name:
J
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Re: So Chase froze my HELOC
When you pay off a loan the bank records a lien release to remove the lien from your house in the county..but I would fight that..THEY should have to pay for it not you.
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| Posted 8/4/08 12:15 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: So Chase froze my HELOC
Posted by jklein1323
When you pay off a loan the bank records a lien release to remove the lien from your house in the county..but I would fight that..THEY should have to pay for it not you.
It's a revolving line of credit, not an actual loan.
I originally did an 80/10/10 on my house with the 10% put on the HELOC. But I had every intention of paying off the HELOC immediately since I was selling a property a few weeks later that I was getting cash on.
So I haven't touched the HELOC for almost three years, and it currently has no balance. But since it's a revolving line of credit it stays on my title as a lien since I was able to draw on it whenever I wanted.
Chase froze my account (didn't close it - because then THEY would be forced to remove the lien themselves). That's their way of being cute and avoiding having to pay for a county lien release fee.
So right now I have no available credit with them, but I have them stuck on my title.
I should sue them for the lien release money just to aggrevate them. I know it's a little over the top, but why should I have to pay this when they are the ones freezing my account?
I might have to look through the T&Cs of my loan to see what kind of fine print is listed regarding freezing.
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| Posted 8/4/08 1:04 PM |
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stickydust
Now a mommy of 2!!!
Member since 4/06 3164 total posts
Name:
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Re: So Chase froze my HELOC
Chase is not the only bank doing this. I practice law in securitizations (both mortgage backed and asset-backed) and MOST banks are not doing HELOCS anymore because no one will securitize them (no agencies will rate them , no investors will invest and they can't get an underwriter). Since they made their money off of securitizing them it really makes no financial sense for them to offer them anymore.
There are a lot of frozen HELOCS now and most people will not be able to get one.
Message edited 8/4/2008 1:16:16 PM.
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| Posted 8/4/08 1:15 PM |
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JenMarie
One day at a time
Member since 11/07 7397 total posts
Name:
Jennifer
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Re: So Chase froze my HELOC
Chase did this to my MIL last week! She's talking to an attorney because she couldn't believe they did this. They took the money out of her account the same day she got the letter.
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| Posted 8/4/08 2:04 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: So Chase froze my HELOC
Posted by stickydust
Chase is not the only bank doing this. I practice law in securitizations (both mortgage backed and asset-backed) and MOST banks are not doing HELOCS anymore because no one will securitize them (no agencies will rate them , no investors will invest and they can't get an underwriter). Since they made their money off of securitizing them it really makes no financial sense for them to offer them anymore.
There are a lot of frozen HELOCS now and most people will not be able to get one.
I definitely agree that Chase isn't the only bank doing this. I know banks have been doing this for a while and I am surprised it took Chase this long to get to me.  I am just a little ****** at the "freezing" process.
Why don't they just close the account? Because they don't want to be bothered with releasing that nice fat lien they slapped on your property!
I have to disagree though about "most people not being able to get one". If you are at 95% LTV then yeah. But if you are at 80% LTV or lower I don't see why they can't give you at least 5% extra. I am pretty certain I won't have trouble finding a new HELOC.
Posted by Jennifer907
Chase did this to my MIL last week! She's talking to an attorney because she couldn't believe they did this. They took the money out of her account the same day she got the letter.
I am curious as to what you mean by "took the money out of her account". Did she have a balance on the HELOC? If so did they actually go in and remove the money from her savings?
Message edited 8/4/2008 4:17:51 PM.
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| Posted 8/4/08 4:16 PM |
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june262004
But I love the Snow!
Member since 5/05 15379 total posts
Name:
Kristin
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Re: So Chase froze my HELOC
WAMU did this to us too 
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| Posted 8/4/08 4:52 PM |
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stickydust
Now a mommy of 2!!!
Member since 4/06 3164 total posts
Name:
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Re: So Chase froze my HELOC
Posted by ave1024
I have to disagree though about "most people not being able to get one". If you are at 95% LTV then yeah. But if you are at 80% LTV or lower I don't see why they can't give you at least 5% extra. I am pretty certain I won't have trouble finding a new HELOC.
The reason this is true has nothing to do with one's credit or LTV unfortunately. The reason is that no matter what your LTV is they can no longer bundle these and sell them into a securitization because no one will buy it, rate it, underwrite it etc. Even if it is a portfolio of all great credit no one wants to take the risk. If they can't securitize it they don't want to do it because then their liquidity is tied up AND they don't make a substantial profit. Its a bad market for Mortgage-Backed securities especially for what is essentially a subordinate lien.
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| Posted 8/4/08 5:59 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: So Chase froze my HELOC
Posted by stickydust
Posted by ave1024
I have to disagree though about "most people not being able to get one". If you are at 95% LTV then yeah. But if you are at 80% LTV or lower I don't see why they can't give you at least 5% extra. I am pretty certain I won't have trouble finding a new HELOC.
The reason this is true has nothing to do with one's credit or LTV unfortunately. The reason is that no matter what your LTV is they can no longer bundle these and sell them into a securitization because no one will buy it, rate it, underwrite it etc. Even if it is a portfolio of all great credit no one wants to take the risk. If they can't securitize it they don't want to do it because then their liquidity is tied up AND they don't make a substantial profit. Its a bad market for Mortgage-Backed securities especially for what is essentially a subordinate lien.
Ok thanks for the heads up. We'll see what happens I guess.
When I go to apply for a new HELOC, if I get approved i'll update the thread in case other people are interested. 
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| Posted 8/4/08 6:35 PM |
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JenMarie
One day at a time
Member since 11/07 7397 total posts
Name:
Jennifer
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Re: So Chase froze my HELOC
Posted by ave1024
Posted by Jennifer907
Chase did this to my MIL last week! She's talking to an attorney because she couldn't believe they did this. They took the money out of her account the same day she got the letter.
I am curious as to what you mean by "took the money out of her account". Did she have a balance on the HELOC? If so did they actually go in and remove the money from her savings?
I didn't ask too many questions because I try not to get involved in her financial matters, but I think she did have a balance. She said they took the money out of her account, even money she paid interest on. I don't know that it matters if she paid interest on it. They told her she can appeal it as well. Her house was appraised for close to $600k and now they're saying because of the economy it's less than $400k. That could be a dramatization because, well that's my MIL, but that's what she told me. I hope it works out for you!
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| Posted 8/4/08 7:40 PM |
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sunnyplus3
:)
Member since 11/05 8749 total posts
Name:
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Re: So Chase froze my HELOC
Posted by stickydust
Posted by ave1024
I have to disagree though about "most people not being able to get one". If you are at 95% LTV then yeah. But if you are at 80% LTV or lower I don't see why they can't give you at least 5% extra. I am pretty certain I won't have trouble finding a new HELOC.
The reason this is true has nothing to do with one's credit or LTV unfortunately. The reason is that no matter what your LTV is they can no longer bundle these and sell them into a securitization because no one will buy it, rate it, underwrite it etc. Even if it is a portfolio of all great credit no one wants to take the risk. If they can't securitize it they don't want to do it because then their liquidity is tied up AND they don't make a substantial profit. Its a bad market for Mortgage-Backed securities especially for what is essentially a subordinate lien.
I've heard it explained exactly as stickydust did by an industry insider on NPR.
All of the corruption of the last several years will have an inpact on the entire industry until it sets itself straight.
The people at Chase aren't the bottomline people lending you the money, at this point it really doesn't matter what your house is worth or how great of a borrower you may be.
The reason why our parents never used their homes as piggy banks (HELOCs) is because they weren't offered like they have been in the last 7 years. They've always been risky investments.
I have probably been told 100 times since I bought my primary residence "you guys have so much equity, you should just take a HELOC"
And those are some of the same people that are paying HELOC payments they can't afford anymore.
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| Posted 8/5/08 9:08 AM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: So Chase froze my HELOC
Posted by KellyFG
I've heard it explained exactly as stickydust did by an industry insider on NPR.
All of the corruption of the last several years will have an inpact on the entire industry until it sets itself straight.
was that on fresh air? i think I listened to the same program, which was actually quite intriguing.
Michael Greenberger
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| Posted 8/5/08 9:28 AM |
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sunnyplus3
:)
Member since 11/05 8749 total posts
Name:
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Re: So Chase froze my HELOC
Posted by Erica
Posted by KellyFG
I've heard it explained exactly as stickydust did by an industry insider on NPR.
All of the corruption of the last several years will have an inpact on the entire industry until it sets itself straight.
was that on fresh air? i think I listened to the same program, which was actually quite intriguing.
Michael Greenberger
Yes Erica, I think that was it! I don't listen to much of anything else except NPR
Message edited 8/5/2008 9:32:08 AM.
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| Posted 8/5/08 9:31 AM |
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