The HELOC Housing Bubble

The housing “bubble” led to a collapse in real estate values that brought the US economy to the brink of disaster. Now, a “HELOC bubble” could be coming to threaten the economy again, even as our recovery proceeds very slowly.

A HELOC, or Home Equity Line Of Credit, allows a borrower to get a line of credit guaranteed by the equity s/he has built up in his/her home. Hundreds of billions of dollars have been borrowed in this way, and these lines of credit helped millions of homeowners to weather the financial crisis.

They also set up a potential HELOC bubble that is just now threatening to burst. The lines of credit are set up so that the payments double at a certain point in the loan’s lifespan. That point is coming soon; Reuters reports that 221 billion dollars’ worth of HELOC loans will reset over the next four years, leading to much higher payments for the borrowers.

Our site is ready for these homeowners. We’re standing by with HUD-approved help for those who are facing a HELOC reset. We can also evaluate each borrower to see what relief options are available to them.

We’re still in the very early stages of this HELOC bubble. Over the next few years, the number of people threatened by rising monthly payments will grow, and if the economy doesn’t pick up the pace of its recovery, the situation could quickly become another financial crisis.

We urge anyone with a HELOC who is facing or has already experienced a reset to call us now, or use our website to get HUD-approved HELOC reset help as soon as possible. Our Priority HELOC CounselingSM will give you a customized action plan and individual help with your unique situation. We’ll find out if you have any mortgage relief options available to you, determine if you qualify, and help you apply for help.