HELOC before market crash ?

[Aalap Sharma]

What happens to HELOC on your primary residence if the market crashes and the property value goes down significantly? Do you still get to keep the home equity line?

[Garry C.]

Had this happen during the last crash 10 years ago. The bank sent out an appraiser under the guise of giving me a better deal, and then claimed that based on the new appraisal my equity would no longer support the line, and they reduced it significantly.

I believe I collected about $350 from the class action lawsuit that resulted from that one.