Not always. In 2008, a lot of HELOCs got cancelled. Unemployed homeowners could not reopen a new one. There is a reason the OP's home was previously foreclosed on.Don’t move. You can always use the equity in an emergency.
I also bought a foreclosed home in CA in 2010. Ours is paid off and worth a bit more than the op's. We have a $500k HELOC. I don't know of any lender that will do a $2M HELOC. It looks like some lenders will do a $1M HELOC . But I don't think we would qualify based on income. So, most of the equity is not accessible. The HELOC we have has a 10 year draw period, after which it automatically closes if there is no balance. By that time, we'll have for sure FIREd, and wouldn't be able to get another HELOC.
I would not draw from our HELOC at current rates, anyway. But perhaps they will go back down within the next 10 years.
Statistics: Posted by madbrain — Mon Apr 15, 2024 3:20 am — Replies 15 — Views 1032