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Charlesinrichmond t1_iua0wdw wrote

Reply to comment by Kindly_Boysenberry_7 in RVA Real Estate AMA - "What The H*ll Is Happening?" Edition by Kindly_Boysenberry_7

good theory, but didn't they shut down a lot of HELOCs in 2007 right as people needed them? I feel like they can be called or frozen, though a long time since I've seen the language. But banks don't want to be handing out bad credit puts.

I kind of think Helocs should be illegal.

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Kindly_Boysenberry_7 OP t1_iua2gxj wrote

You are exactly right, banks did close out HELOCs during the crash. Which was probably smart, if you are a lender you sure don't want people spending more money from their "equity" if their house is already under water.

I think there is a time and place for HELOCs, like for home renovations, but they are certainly VERY dangerous if they are not used responsibly.

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Charlesinrichmond t1_iua6aup wrote

yeah, and the average person uses them for bad things from my observation sadly

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