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Last year, after remodeling our home, we were appraised by BofA and they approved a home equity line of credit based on the valuation of our home. Two days ago, we received a letter stating that our line of credit was canceled. The bank has randomly devalued our home by 67% based on a 'desktop model."
Iowa never has had a housing bubble and is very secure for debt, our family is financially responsible with excellent credit, no late payments and a great debt/ income ratio. Arbitrary devaluations to protect Bank of America from their own bad banking decisions should never be allowed! Think what this will do to the economy!
We are closing every account and credit card we have with them, along with moving our home loan!
I just received a letter, and they wiped out my $ 135, 000. equity line to $ 39, 500. I have always been an excellent customer. Enough to participate in there Premier banking program (which gave me my own banking rep.) What gets me more upset then anything else is that when I contacted them they indicated that they would reconsider if I could substantiate a substantial increase in the value of the home by any additions to the house or major renovations. Its a good thing that I was not left holding the bag with contractors as I would become liable without funds. The whole purpose of the line, is to provide some monies, that are tax deductible, although variable in rate, but certainly cheaper than a credit card with high interest rates. BankAmerica has now destroyed the equity market .
We had a couple of years ago, decided to reduce our mortgage by giving BankAmerica $ 100, 000. which left a small mortgage, easily payable and because of our age and limited funds an easy monthly payment to make. In return we applied for and received an equity line. Now they have taken that away, without even the courtesy of letter other than to inform us of any outstanding monies that may be owed and the fact that some Desktop program has determined that our home has depreciated in value.
When we asked for a walk through appraisal, it would have to be at our expense, and no guarantees that the equity line would be re-instated. How this will effect our credit rating will remain to be seen, but something should be done about this.
The above comment from Jerry is almost identical to our situation. I just got off the phone with a manager (after having been promised for a call back numerous times) and still feel like I have gotten nowhere. I've asked for an appraisal, even at MY expense to show that the house is not worth what they are saying, but have still been told no. I'm at my whit's end. I am so done with B of A. This is just horrible service.
Is it hard to get a line of credit? I heard it's easy with http://www.financecreditline.com
Bank of america just closed our 140, 000 dollar line of credit for no reason...perfect payment history...3 mortgages with BOA. Premier customer...Cancelled on November 2nd.2009 didn't receive letter until the 9th of November. Now searching for a bank that is consumer friendly. Please post suggestions.
Bank of America is too shady for us now.
I became a BOA customers not by choice. My original loan and equity line of credit with Country Wide was sold to BOA. Despite being a financially responsible individual throughout the years, I am now subject to "BOA Policy". Unfortunately, it's too late choosing to do business with them. I understand the stressful, frustrated and "I'll show them by going out and getting another loan" attitude. Bottom line is that getting a loan these days is difficult and it's only going to cost us more money. Money we should not have to pay. Since BOA won't deal with any of us directly, other than cutting our lines of credit, what legal steps can we take with BOA? Anyone.