bentleyWIRE | blogged

    The main goal of our blog is to inform, educate and provide real world knowledge that can ultimately improve our clients' standards of living.  So, without further ado, I have some great info paired w/ some exciting news that will save you money.

    This morning, I contacted Citibank at 1-866-583-2358 re: my HELOC and the many news stories about lenders freezing access to funds. The call agent (Sarah), reluctantly confirmed that Citi is indeed freezing HELOCs based on a computer algorithm which she's not privy to. You can assume it takes into account homes in declining markets, AVMs (Automated Valuation Models) and total credit extended vs current market value. In addition to Citi, there are reports that Countrywide, Chase, IndyMac, BofA and others are all doing similar freezes. So be sure to plan accordingly if you know you'll need these funds within 1 or 2 yrs!

    On a separate note, I always try to make all phone calls as productive as possible, so I asked if they would reduce my existing interest rate on my HELOC. I was asked to hold while she checked to see if something could be done for me. In a minute and to my utter surprise, she returned stating that "as a good customer w/ excellent payment history" she was able to approve a 0.50% reduction to my rate. She went on to state that I'm eligible for a rate reduction/modification up to 0.50% each year until I get to Prime minus 0.50%.

    Moral of the story? It never hurts to ask for something even if it seems outlandish. It seems rate modifications are no longer reserved only for those in dire need of assistance.  Instead, lenders may currently be willing to provide these even to those current on their payments in an effort to be proactive in keeping defaults at bay.