How to Open a Bank Account Online

How to Open a Bank Account Online header image 2

What if the lender freezes or reduces your line of credit?

No Comments · Uncategorized

Plans generally permit lenders to freeze or reduce a credit line if the value of the home declines significantly or, when the lender reasonably believes that you will be unable to make your payments due to a material change in your financial circumstances.

If this happens, you may want to:

1. Talk with your lender. Find out what caused the lender to freeze or reduce your credit line and what, if anything, you can do to restore it.

You may be able to provide additional information to restore your line of credit, such as documentation showing that your house has retained its value or that there has not been a “material change” in your financial circumstances.

You may want to get copies of your credit reports (go to the Federal Trade Commission’s website for information about free copies) to make sure all the information in them is correct.

If your lender suggests getting a new appraisal, be sure you discuss appraisal firms in advance so that you know they will accept the new appraisal as valid.

2. Shop around for another line of credit. If your lender does not want to restore your line of credit, shop around to see what other lenders have to offer.

You may be able to pay off your original line of credit and take out another one.

Keep in mind, however, that you may need to pay some of the same application fees you paid for your original line of credit.

Tags:

No Comments so far ↓

There are no comments yet...Kick things off by filling out the form below.

Leave a Comment