BusinessWeek has a good article about the problems that HOme Equities are reaking and will continue to create for banks. Helocs are generally unsecured and when homeowners default, banks get nothing in return. Many banks have already written down billions in defaulted Home Equity loans and more is on the way.

 

Submitted: Jan 19, 2008    Views: 234    Comments: 2    Likes: 2   


View Article: http://www.businessweek.com/magazine/content/08_04/b4068000575390.h...


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Comments Received:

rj
(Unregistered)

Good. Let them go under, the lender and homeowner. No taxpayers bailout.

Posted: Jan 19, 2008

Sandra
(Unregistered)

I used to work for a bank in their heloc group. The bank was always lowering its lending standards to pump more volume. As long as housing prices were rising, everything was fine. We all knew the bottom would drop at some point and luckily I got out before it did.

Posted: Jan 19, 2008



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