My home equity line of credit got cancelled!

[billybob537]

I had secured a line of credit to buy a house to flip.
The deal fell through becouse the estate had not been settled yet when the housing market started falling off. I decieded not to by the house. It cost me $1500.00 to close on the loan. The bank just sent me a letter saying I could not draw on the account any longer. If I had cancelled the account there would be a $500.00 fee. These banks really suck. We should go right back to the new deal. Millionaires should be paying taxes with no LOOPHOLES. Small investors and homeowners get no breaks, Billion dollar corporations pay no taxes?

[Double T]

1. The bank might have done you a favor. This is no time to be flipping houses.........

in most markets.

[Bryn]

2. Average Americans can't afford overpriced houses

that are flipped. All we need is a good home, affordable home to live in.

[Skidmore]

3. People are buying in your area now?

[Turbineguy]

4. So....

have you done a Zillow search on the current value of the house you decided not to buy?

[On the Road]

5. Banks are All Over the Place Nowdays

I can't believe they would take your money and then cancel the line of credit. Must be due to a reappraisal.

Perhaps it's better that the original deal didn't go through, giving the timing. But if you're still interested in flipping properties, there are some amazing deals out there. Look at bank sites, auction companies, wholesalers, Real estate investment club boards. They're practically begging people to take properties off their hands. You can afford to wait for a good deal.

I beleive MA is more expensive, but I just bought two rowhouses in Baltimore for $80,000 that are on nice streets, in decent shape (mostly floors and painting) and were worth $160,000 a year and a half ago. It is a gamble in this market, but that can be the time to take the plunge.

As far as getting the money, I found TD Bank to have excellent deals and be customer friendly. Or it's always possible to get hard money. The 3% down and 14.9% interest can be worth it for the right deal if the banks don't come through.

[merh]

6. I'd definitely go to a lawyer

if you are out $2,000 then you need to demand it back

[msongs]

7. You got it for a reason then changed your mind? well so did the bank nt

[peace13]

8. Excuse me but this person paid for a service that the bank has decided not to offer.

A refund is due. It is lucky that there is not a contract on a house that the funds are needed for.