Guidant Financial Group Blog

Scary but true: As if the housing market weren’t already bad enough, lenders are now freezing lines of credit. While not all accounts were frozen, many Americans with lines of credit in place can expect their accounts to be scrutinized.

Money magazine (see When a HELOC Freezes Over) has some suggestions on what to do if your account is, or could be, frozen.

If your account has not been frozen (yet), Money suggests you know your risks. If you live in an area with high foreclosure rates you could be at higher risk. If your account has already been suspended, Money outlines a strategy for fighting the freeze, including obtaining sale prices for houses in the area and getting your home re-appraised.