I just received a letter, and they wiped out my $ 135, 000. equity line to $ 39, 500. I have always been an excellent customer. Enough to participate in there Premier banking program (which gave me my own banking rep.) What gets me more upset then anything else is that when I contacted them they indicated that they would reconsider if I could substantiate a substantial increase in the value of the home by any additions to the house or major renovations. Its a good thing that I was not left holding the bag with contractors as I would become liable without funds. The whole purpose of the line, is to provide some monies, that are tax deductible, although variable in rate, but certainly cheaper than a credit card with high interest rates. BankAmerica has now destroyed the equity market .
We had a couple of years ago, decided to reduce our mortgage by giving BankAmerica $ 100, 000. which left a small mortgage, easily payable and because of our age and limited funds an easy monthly payment to make. In return we applied for and received an equity line. Now they have taken that away, without even the courtesy of letter other than to inform us of any outstanding monies that may be owed and the fact that some Desktop program has determined that our home has depreciated in value.
When we asked for a walk through appraisal, it would have to be at our expense, and no guarantees that the equity line would be re-instated. How this will effect our credit rating will remain to be seen, but something should be done about this.