Can a bank/credit union etc revoke a Heloc if market turns?

[Seth Rouch]

Hi all, I’m curious to know if: I have a HELOC, for easy numbers let’s say $100k, then the market turns/tanks. That equity is no longer real essentially. Would/coukd the HELOC be “revised” or “revoked” if I’ve not used/pulled any funds out? Could the amount be changed if I have pulled nothing out? Secondly: I don’t believe this to be the case but wanted to check- Would/could the note balance be called due in a tanking economy? (Assuming no foreclosure happened)

[Kevin B.]

The banks could freeze your credit available and not allow you to use the credit.  Many lenders did this very thing the last go round.  Consequently, a lot of borrowers hearing about this going on accessed their lines of credit to get their “Cash/ Equity” out before it was frozen and simply moved it to a bank or other account just in case.

The note won’t be called due necessarily, unless you were in breach like not paying, but would still have the same terms in place.  They can’t change them after you’ve both agreed to the terms.  Read your Note terms.