Help with HELOC being closed

[Anonymous]

I recently rec'd a letter from Chevy Chase bank informing me that my account was being closed due to "the value of the property materially declined below the appraised value at the time of your credit line was established".  What are my options, if any, to argue to keep account open?

[Anonymous]

HELOC = Home EQUITY Line of Credit.  If you don't have the equity position any more, then what is the basis for them to keep it?  You could try to apply for an unsecured LOC, but HELOC needs equity.

What would you argue as a basis to keep as-is if your value has declined?  Do you dispute that the value has declined?

[Lel]

HELOCs are getting closed or limits have been drastically reduced for thousands of homeowners, because of falling home values.  The only way you might be able to get it reopened is if you get your lender to review the appraised value.  It's a longshot, though, especially since nowadays it's hard to get a HELOC that puts your combined LTV above 85%.  You probably would also have to be willing to pay for a formal appraisal, which would cost a few hundred bucks.