I received a telephone call shortly after my post: Federal Reserve Again Cuts Interest Rates; my clients $80,000 2nd TD (HELOC) which was at a 0 balance was canceled. She had used it before, paid it off, never been late, and now it’s canceled.

Tens of thousands of homeowners with home equity lines of credit are getting a rude surprise: They’ve been told by their lender that they can no longer take money out on their credit lines.

Trying to tap into home equity? We'll see
Countrywide and others tell thousands of homeowners that they can no longer borrow against their credit lines as the companies tighten standards.