Are you worried about the banks freezing your HELOC? Watch this video! Let's talk about HOW and WHY banks will Freeze Your HELOC (Home Equity Line of Credit) #HELOC Be sure to watch our Video: "How to Pay Off Your Mortgage In 5 to 7 Years": https://www.youtube.com/watch?v=eGVn9iq1e6c So... Why and How banks will freeze your HELOC? You might be scared or worried about your HELOC freezing if there's ever an economic downturn or a recession. In 2008, LOTS of people lost their HELOC or had their HELOC frozen but there's also another group of people got to keep their HELOC. One of the BIGGEST reasons why your bank could potentially freeze your HELOC is due to the fact that you owe more than what your home is actually worth. For example, Let's say that your home is worth $500,000 and let's you owe $450,000 on your home. The recession hits hard and let's say your home value drops to $400,000. Now you owe more than what your home is worth. This is a classic example of your home being "underwater". In this scenario, the banks have a couple of options to exercise during dire times. They can: A: Freeze your HELOC from you ever drawing money again and lock it into a closed-ended loan. Your only option is to pay back the loan with a monthly payment. Sometimes the monthly payment is what puts a large financial burden on the borrower and they can no longer make the payments. B: Call the loan due immediately which means that you are forced to pay the entire amount of your HELOC balance or you may face foreclosure. C: Partially call the loan due to get your loan to value ratio into a more favorable range. So in the same example we used, the banks may require to pay $50-75k on your debt balance to stay within a more "safe" Loan To Value ratio. BUT... There is a way to prevent or significantly lower the chance of your bank freezing your HELOC. One thing you can do is to stay within 75% Loan To Value when using your Home Equity Line of Credit. This can be achieved by not maxing out your HELOC. If you're above the 75% LTV right now, you can use our Debt Free Acceleration strategy to start paying off the debt that you may have. Watch the strategy explanation video right here: https://www.youtube.com/watch?v=eGVn9iq1e6c Your HELOC can be a wonderful tool to do lots of amazing things but like anything in life, if you misuse it and abuse this instrument, it can backfire on you and cause lots of unfavorable financial situations. I hope this video helped you understand How and Why Banks Will Freeze Your HELOC? 😃 Thanks for Subscribing & Liking our Video! The Kwak Brothers are millennial real estate investors who have acquired over 82 Units of Rental Units and have raised over $20,000,000 of capital for their real estate deals. They are based out of the Chicago-land area and they are dedicated to helping hard-working people become financially free real estate investor! They specialize in owner financing acquisition and raising capital. They are the creator of the FORCE Strategy (Find the deal, Owner Finance It, Raise the Capital, Cashflow It, and Expand your Financial Freedom) 📊 GET OUR FREE HELOC STRATEGY CALCULATOR & EBOOK: https://bit.ly/2WZUPpm 📋 SIGN UP FOR OUR FREE OWNER FINANCING COURSE: https://freeownerfinancingcourse.com 💻 JOIN OUR FREE FACEBOOK MASTERMIND GROUP: https://www.facebook.com/groups/bestreigroup GET SOCIAL WITH US: 📣Facebook: https://www.facebook.com/thekwakbrothers/ 📣Instagram: https://www.instagram.com/thekwakbrothers/ 🔊 📧 Hire the Kwak Brothers to Speak: info@thekwakbrothers.com #realestateinvesting #thekwakbrothers #realestate ======================== Video Created by: Christopher Dorsano - Creative Director https://trufocusproductions.com/ ---DISCLAIMER--- The suggestions, advice, and/or opinions that are given by Sam Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold Sam Kwak, Novo Elite, Inc. and the Kwak Brothers brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based upon experience.