Message to homeowners: If you have a line of credit or Home Equity (HELOC) and are even considering hitting it, you better hurry up and tap that thing.
Wait to long, and you may receive a nastygram from your Bank/Broker telling you "Too Late!"
At least, that’s what happened to "several thousand" Morgan Stanley clients. The nations second largest brokerage firm, after a periodic review, stated:
"Consistent with the terms of the HELOC, or home-equity line of credit, Morgan Stanley periodically reassesses client property values and risk profiles,” said Christine Pollak, a Morgan Stanley spokeswoman in New York. "A segment of clients was recently notified of a change in the status of their home equity line of credit or HELOC due to a change in the value of their property and/or their credit profile.”
Its good to see that lenders have become more proactive about risk, albeit 5 years to late.
There’s a lesson in this to home owners who were thinking about using this line of financing: If you have those HELOC checks your lender sent you, better hurry up abnd use them before its too late!
Morgan Stanley Said to Freeze Client Home-Equity Credit Lines
Bloomberg, Aug. 5 2008
Tobias Merath, a commodity analyst at Credit Suisse Group, talks with Bloomberg’s Bernard Lo and Haslinda Amin in Singapore about the impact of declining demand, falling prices and the global economic slowdown on commodity markets.
click for video
00:00 Demand decline, global slowdown; speculation
03:13 Soft commodities, "correction not collapse"
Running time 05:52
Merath Says Commodities Drop `Correction not Collapse’: Video
Bloomberg, Aug. 6 2008