Did your lender freeze or reduce your home equity line of credit?

Did your lender freeze or reduce your home equity line of credit? What steps should you take with your lender if your HELOC has been froze or reduced? The Federal Reserve Board has offered 5 tips for dealing with your lender when this happens.

1. Make sure you have received and read the notice your lender sent you regarding changes to your HELOC. You must receive a written notice no later than 3 business days after the freeze or reduction.
2. Contact your lender and talk to them about about your concerns.
3. Get to the bottom of it. Why did they take this action? Was it due to a decline in your home's value?
4. Is it possible to get it reinstated? Request in writing that the HELOC be reinstated.
5. Will there be fees owed for reinstatement?

Visit the Federal Reserves webpage to read the entire 5 Tips for Dealing with a Home Equity Line Freeze or Reduction report.