Morgan Stanley freezing home equity credit lines

[granny031350]

Just announced on CNBC.  Morgan Stanley is going to freeze all of its home equity lines of credit and review everyone's on a month by month basis.

[Anonymous]

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granny031350 wrote:

Just announced on CNBC.  Morgan Stanley is going to freeze all of its home equity lines of credit and review everyone's on a month by month basis.

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Already happened to hubby and I in June. Chase froze our barely-used HELOC. When I called and spoke with them, they said their "new" HELOC requirements in AZ is no more than 60% (sixty!) LTV. Ludicrous. Oh, well. C'est la vie.

[MattH]

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@Anonymous wrote:

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@granny031350 wrote:

Just announced on CNBC. Morgan Stanley is going to freeze all of its home equity lines of credit and review everyone's on a month by month basis.

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Already happened to hubby and I in June. Chase froze our barely-used HELOC. When I called and spoke with them, they said their "new" HELOC requirements in AZ is no more than 60% (sixty!) LTV. Ludicrous. Oh, well. C'est la vie.

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Yikes, SIXTY percent LTV is the lowest number I've ever heard. What's the denominator for that ratio: original purchase price, recent actual appraisal, drive-by appraisal, or their computerized appraisal?

Where I live they reassessed all our tax values JUST at the absolute peak of the bubble before the crash, so we're really paying through the nose right now. The absolute value doesn't matter too much because they basically divide the total budget by the total of appraisals (so if everybody's value is 10% too high the mill rate would just be correspondingly lower), but the problem is during the boom residential went up much more than commercial did, so now us residential owners pay a much bigger chunk of the whole until the next reassessment.

[haulingthescoreup]

My 80-year-old mother fights a grim and unending battle against the City of Memphis property tax assessor's department. All we can figure out is that they throw any number they want to out there, and it's up to the homeowners to discover the assessment, hunt down the comps, challenge the assessment, and beat them down. Municipal bureaucrats at their worst.