Joanne LoBuono bought her New Jersey home as a fixer upper. And for the past decade, she's been paying for the repairs with a home equity line of credit.She received the letter from the bank informing her a week after finding out. But do people really believe that banks will give notice before closing off the access? That would not make any sense - most people would take everything they had and put it somewhere else if they knew their lines were going to be closed.
She met with a banker last month to check on her account.
"She went to look at my line of credit and couldn't open it. She kept saying , 'gee, this is strange, it's blocked," said LoBuono.
The bank had taken away her line of credit.
Her home value is now not worth enough to secure the loan, so the bank cut her off.
Since the mortgage meltdown, banks are re-evaluating their home loans. In Joanne's case, it came as a complete surprise.
There are many on-line sources where people can see the estimated current estimated value of their property. Take a minute over at RealtyTrac's Home Value page and see how much your area has declined. Then you will not be surprised when you receive that letter in the mail...