What is wrong with people? Since when did house appreciation become wealth before you've sold your home? It's as though HELOCs have become a way of life. Check out Nancy's gourmet kitchen. Don't get too attached to it, Nancy, you're on your way out of your HELOC-home. Perhaps if people would live within their means we wouldn't be in this mess. Yet another woman in the USA unwilling to settle for less. A phrase comes to mind: "We can do this."
I coined this phrase a while back:
Livin' high on the
9534 Westwood Dr, Ellicott City, MD
5 beds, 3.0 baths, 2,578 sq ft
Sale History: 10/05/1998: $178,800
From other blogs:
Nov '01 - Refi $213,600
Apr '02 - HELOC unknown amount
Dec '04 -Refi $375,000
Oct '06 - Refi $381,000
Oct '07 - HELOC opened for $95K (spent $50k before it was pulled)
2008-02-23: Homeowners Losing Equity Lines
In one brief phone call, Nancy Corazzi's lender yanked away what was left of the $95,000 home equity line of credit that she and her husband took out five months ago.
"I got off the phone and I was shaking," said Corazzi, who was using the money to pay preschool tuition for her twins ."I was near tears. We needed this credit line to get us through some tough times." (How was she planning on paying it back??? So, paying expensive tuition for pre-school is tough times? WTF!!!)
Corazzi initially used her line to consolidate debt. She and her husband took out the credit line in October because they thought her job was in jeopardy. (Job in jeopardy, take on more debt. Huh?)
Meanwhile, they are trying to open a new home equity line elsewhere, but chances are slim given the change in Nancy Corazzi's job status and the drop in their home's value. Five months ago, the Elliot City house was appraised at $560,000; the lender says it is now worth $469,100.
"I told them, 'You guys are wrong,' " Nancy Corazzi said. "They said, 'Sorry, this is what we're doing in the entire area.' " (Tell 'em, Nancy: You guys are wrong! I need this credit to sustain my artificially high standard of living!)
Corazzi said she was blindsided by what's happened. "I didn't know they could do that. I thought I was too smart to have something like this happen to me." (If she was so smart, why didn't she see the Housing Bubble? Does she read Housing Panic or Dr. Housing Bubble? Not too smart if you don't.)