Warning to self-employed appraisers with Chase Heloc's

[Terrel L. Shields]

I can still get investment and construction loans from local banks.

Ditto. I know my lender. I went to school with his daddy. I do appraisals for him and all the other LOs in the bank and I have a Line of Credit. The other day, he said, "Go buy something, you've got too much credit left ... I need to makes some loans to people who pay me back."

 

[Shelgard]

What is happening here?

Somehow, my rant about having my Heloc supended, has evolved into a discussion of how borrowers and lenders got into this mess in the first place. A good thing I suppose. It needs to be discussed. It needs to be understood. "General Public" AJL118 says in a nutshell, tough noogies, lenders have the cash, owe the property owners nothing. He-She obviously may work on the lending side of the fence, and is a lenders advocate. Fine. Lenders thrive on interest payments on loans based upon borrower credit. How are banks going to survive if they aren't willing to make loans? Make and keep good loans, (like mine) get rid of the bad ones. Simple economics. Don't use your computer generated, worthless, computer valuations to determine risk. Realize that not all loans will fit "inside the box". That's what got us here in the first place. Base your collateral needs on an APPRAISAL done by a seasoned, ethical and honest, local market appraiser, not AVM's and whoever is "fastest and cheapest".

 

[LACKLAND27]

Just went through this whole thing with Chase..... They first took away my credit cards (with no notice), but I had nothing on them, so I didn't really care, then I went on-line and they reduced my Heloc down to the exact amount (rounded) of my balance (was 200K to now under 5K), again no notice. Then they preceded to tell me the value of my home has fallen significantly. When they told me the value I almost threw-up. I insisted on some sort of documentation stating that that was the value of my home and they refused. But they did give me the option of paying for my own appraisal $425.00 and they would have an appraiser come out. Well I asked who the appraiser was that came up with the first value and they said it was what they call an AVM. Now they want me to pay their AMC to come up with a value and I will be able to keep the appraisal, but I can only use LSI, can not obtain my own appraiser.

I am also approved with Chase, but with this kind of mantality, I feel thay can do anything they want and get away with it. So I immediately closed all my accounts and went down the street where they immediately gave me 20K credit (7% cards) and told me I was the 25th person to walk-in leaving Chase. They also did this to 2 of my neighbors.

I just did the same thing. Closed all 4 accounts I had with chase and went to a small local bank. I loved the people at the Chase branch, but the corporate office staff are a bunch of righteous butt heads. The day I had enough was when the were treating the branch manager like crap on the phone while she was trying to find out why they bounced a 5K check I wrote when the balance was and had been 19K. She was busy apologizing to me the whole time. I really felt bad for her, but closed all accounts that day. CHASE SUCKS!

 

[AJL118]

Quote "General Public" AJL118 says in a nutshell, tough noogies, lenders have the cash, owe the property owners nothing. He-She obviously may work on the lending side of the fence, and is a lenders advocate. Unquote

Mr. Montgomery - If I came across like a lender advocate, it was not intended. My intent was to show you can't control what you can't control. If it makes one feel better to vent when s/he feels offended that his/her rights impugned, have at it. I have my own scars after 5 decades of bank dealings and, after taking some inventory of my battles a long time ago, I found I could have eliminated these run-ins (and me ultimately losing the battle) by systematically reducing my vulnerabilities. I am a lot poorer now, but I can now tell them to kiss my patootie at will. It's a FEEL GOOD!

 

[DTB]

Not only Chase, but I've had awful service at TCF. Needed to do a 60K wire transfer, went through all the hoops- a very convoluted system. Transfer did not show up, closing scheduled for next day. The branch manager-a nice guy- finally was able to furnish a cashier's check for 60K. Catch was I was nowhere near his branch at the time!

I needed to get the check in a very crowded Jewel Food Store on Roosevelt Rd, near the 'hood. Talk about schvitzing, no sauna needed for a week after that.

I managed to get an internal phone # to HQ in MN, the idiot only wanted to know how I got that #, not how he could HELP me.

 

[AJL118]

Follow-up 1:15 EDT: Just opened the personal mail and our buddy CHASE is offering me $100 to open up a checking account with them. This, after canceling my WAMU Visa card for no valid reason. Must admit that this blundering bunch has style.....

 

[panappr]

They are also offering me a chance at a new credit card, via mail yesterday. Brilliant form.....

 

[Caligirl]

Different bank, but similarly strange behavior. Our HELOC lender sent us two letters regarding our HELOC which directly contradicted each other. Both went in the round file but provided us with a good laugh.

 

[The Bob]

You have to wonder if bankers take a stupid pill every morning. Think of the money they spent acquiring the accounts of guys like Gary Montgomery that are good customers. These guys seem clueless to what and where the real risk is. I think that banking will slowly evolve back to the community bank model...the old "Farmers and Merchants" type banks. It just makes more sense. There is more to business than squeezing the last penny of efficiency out of an operation, which is all these big banks offer.

 

[PropertyEconomics]

Think about this for a moment from the standpoint of a lender ....

1) Value of the equity is eroding in nearly all markets nationwide.
2) Unemployment is highest in a few decades.
3) Self employed are also suffering a down turn in income like most other businesses ...

And you dont think they should suspend HELOCs why? Because its you? IF they continued on business as usual and took tons of hits ... this group of appraisers would be the very first to criticize them.

They are in a no win situation and they have measured the risk .. its too risky. HELOC suspended ... sounds like good business practice to me.