Unable to et Fixed Rate on HELOC due to loss of equity

[shrimspter]

What is the name of your state (only U.S. law)? FLorida

I have a HELOC with an adjustable rate that origianlly had the option to turn it to a fixed rate. There was a stipulation in the contract that was not disclosed to me verbally that I would not be able to get a fixed rate if I lost the equity in my house. Since the market crashed, my equity dropped and i have not been able to get a fixed rate. Seems i'm being punished for the market instead of failure to pay. With interests rate potentially rising I am concerned that my payments will also. Is there any legal recourse in this matter?

 

[Zigner]

What is the name of your state (only U.S. law)? FLorida

I have a HELOC with an adjustable rate that origianlly had the option to turn it to a fixed rate. There was a stipulation in the contract that was not disclosed to me verbally that I would not be able to get a fixed rate if I lost the equity in my house. Since the market crashed, my equity dropped and i have not been able to get a fixed rate. Seems i'm being punished for the market instead of failure to pay. With interests rate potentially rising I am concerned that my payments will also. Is there any legal recourse in this matter?

Refi with a different lender.

 

[shrimspter]

Refi with a different lender.

Tried to refinance but my 1st mortgage and HELOC places me above the equity of my house. I'm probably 120% together. With HARP I can only refinance the 1st mortgage

 

[Zigner]

Tried to refinance but my 1st mortgage and HELOC places me above the equity of my house. I'm probably 120% together. With HARP I can only refinance the 1st mortgage

That's true, you won't find too many banks that are willing to finance a home for more than what it's worth. That's is one of the things that got them in to the mess in the first place. You may need to continue paying until you recover some of your equity.

 

[STEPHAN]

The market in Florida is slowly but continuously coming back. It looks like you just have to wait.

 

[Silverplum]

What is the name of your state (only U.S. law)? FLorida

I have a HELOC with an adjustable rate that origianlly had the option to turn it to a fixed rate. There was a stipulation in the contract that was not disclosed to me verbally that I would not be able to get a fixed rate if I lost the equity in my house. Since the market crashed, my equity dropped and i have not been able to get a fixed rate. Seems i'm being punished for the market instead of failure to pay. With interests rate potentially rising I am concerned that my payments will also. Is there any legal recourse in this matter?

No.
**************.

 

[adjusterjack]

What is the name of your state (only U.S. law)? FLorida

I have a HELOC with an adjustable rate that origianlly had the option to turn it to a fixed rate. There was a stipulation in the contract that was not disclosed to me verbally that I would not be able to get a fixed rate if I lost the equity in my house.

It was there for you to read. Nobody had any obligation to discuss it with you. Are you telling us that you are one of those poor unfortunate misguided people who sign contracts without reading and understanding them? Tsk. Tsk.

Seems i'm being punished for the market

You and millions of other homeowners.

With interests rate potentially rising I am concerned that my payments will also.

Then start adding additional amounts to your monthly payments to pay down your HELOC balance faster.

Refinance your first mortgage balance if you can lock in a substantially lower rate with lower payments. Then you can shift the difference into paying off the HELOC.

Is there any legal recourse in this matter?

No.