Renewing a HELOC Loan

[Jerry Hill]

Looking for some advice. I live in Northwest Arkansas, the home of Wal-mart where property values are seeing a steady appreciation. Last year, I bought a triplex and took out a HELOC on one of my other rental properties that is situated in a high growth area of Northwest Arkansas. Well, it is now time to renew my loan and the new in-house appraisal my bank used came back with a $50,000 depreciation from just one year ago. As a result, they are asking for money to pay down the loan to comply with the 80% Loan to Value rule.

I'm confused as to this depreciation and find it questionable, especially when real estate is trending upward in this area. I've never faced this situation before and hoping someone has and can advise me on what recourse I have. Thanks in advance.