Quote:
Originally Posted by I-Hate-Hulse
Don't these HELOC's come with some sort of a "Cash Call" provision, that if the market value of the house drops below the amount of the line balance that you need to buck up and pay up?
Man, that'll be ugly here if that's the case.
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Well as long as you are not borrowing right to the value of your home (which is not advisable for many reasons) then you should be relatively safe. If the market plateaus here and settles, or drops by 5% then its not a big deal. if the market drops so that home values are down by 75% then there could be an issue...but even then I'm not sure if that is the biggest concern.