Sunday, September 12, 2010
The Real Estate Channel has an interesting new article that discusses the looming problems posed by HELOCs (aka second mortgages or home equity lines of credit).
Overall, the article does a very good job explaining the sometimes amazing examples of how these lending tools overwhelmed borrowers. The "amazing' part is how these HELOCs were sometimes used to finance land purchases in entirely different states--with one example being Californians who took out home equity lines to purchase property in Austin, Texas.
What a mess.
--Chad Emerson, Faulkner U.