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Updated over 5 years ago on . Most recent reply

User Stats

26
Posts
9
Votes
Lincoln Selk
  • Rental Property Investor
  • PLEASANT GROVE, UT
9
Votes |
26
Posts

Could a HELOC be rescinded/limited by bank if the market drops?

Lincoln Selk
  • Rental Property Investor
  • PLEASANT GROVE, UT
Posted

So I’m in the process of securing a couple HELOCs on rental properties. Curious if there is a scenario where these lines of credit, after being secured, could be recalled/limited if the market corrects or takes a dive..?

If a property is worth 250k today, but a year from now is selling for 175k, could the bank effectively take away the HELOC?

I’ll of course ask my back this question as I finalize things but curious what all you BP experts have see on the topic.

Thanks!

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