April 9th, 2012 10:22 PM by Eric Fang
Usually we only knows that HELOC lender will reduce your HELOC limit at the subordination time.
But for most lenders, they will close your HELOC oncethey find out the subject property changed from Owner Occupied to Rental.
Recently I have one refinnace failed just because of the HELOC reduction. The HELOC lender did not recordthe modification of new HELOC limit. And they toldthe client that they don't have the intention todo the recording at a later time either.
So please check whether your HELOC limit modificationwas recorded(if modified). Otherwise it might affectyour next refinance.