Update: save your money; Citibank will not reopen your HELOC even if you spend $600 on an appraisal

I have another question: Why are there ads on this page and everywhere I go on the internet for lost cost, low interest equity lines from Chase, Countrywide and others? This is downright bizarre. Scary.

Indeed. I run ads to help defray the cost of this website, but I have very limited control over what ads appear.

Thanks for your reply, Sam. I wasn’t commenting about you or the site, but about the fact that these lenders continue to advertise all over the internet about their great home equity loans at less than 5%. Given that they are indiscriminately cutting off their customers who have excellent credit, no missed or late payments and still have equity to secure the credit lines, it strikes me as sinister, dishonest and unfair to continue to advertise these loans to the unwitting and unsuspecting consumer. These ads are everywhere!

I had the same problem with Citibank. I called the number on the letter they sent me and I was advised to get another appraisal to have my home equity line of credit restored. I specifically asked who I needed to use to have the home appraisal completed by and I was told by any certified appraisal company. I paid three hundred dollars to have this done and I am now told that this appraisal won’t work since I didn’t go through LSI. I was never informed once to use LSI. I am working on filing a report with consumer protection if anyone else is interested let me know.
Brian

I’ve been stung, too. Worse, I am in the middle of a remodel with all demolition done (paying as work progresses, I owe the contractor for the demo) and just received the happy news that my HELOC is frozen at the current balance (more than $100,000 less than the limit).

I thought that there is a Federal law that prohibits a lender from REQUIRING a specific appraisal firm, especially when that firm is charging more than market rates.

I take the position that since Citibank has unilaterally decreased my appraised value (ergo, the decrease in the credit line), Citibank must justify this with a written appraisal, just as they are asking me to pay for one to justify why their decrease was arbitrary and capricious.

Never piss off an attorney like me. You may be seeing some news about a class action suit on this scam. (Citi would be happy to give me a non-secured loan at 3x the interest rate - illogical in that if I can pay that, why can/would I not pay the HELOC). Meanwhile, please file complaints with your state and federal regulators.

I recently had 6000 taken from our equity line that we were planning to use to pay our 4000+ property taxes and mortgage. I have been wrongly putting money in the equity line and using it like a savings account. Thinking I was doing the right thing, paying down the mortgage with my husband’s quarterly commission checks until we needed the money. I had been told by bank advisors that this was fine. So I deposited the last check for 6000 and then went to use it and it was gone. And yes Citibank admits they did not inform us first. They said it was based on property values decreasing. I thought they should give us written notice first. although they may not be obligated by law, it seems they should as a courtesy for families that do all their banking with them and have so for close to 10 years. And have never missed a pyament, etc. I think it will be interesting to see what happens .