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Old 05-05-2012, 09:26 PM
 
128 posts, read 194,605 times
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i bought a second home, and iam going to rent out the first home which has a large line of credit on it.

if i tell the bank i moved will they cancel the credit line? it is wells fargo.
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Old 05-05-2012, 11:31 PM
 
Location: Columbia, California
6,662 posts, read 25,329,136 times
Reputation: 5066
As long as you keep up on the payments you should be ok.
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Old 05-06-2012, 01:45 AM
 
491 posts, read 1,972,357 times
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They may close it, they can do whatever they please. They gave you the HELOC for your primary residence and banks do not like to have HELOCs on investment property, which is what you are planning for the home.

I was in this very position with BofA so I know. I went to them to open a new line on my new home. They tried to close the existing one but I threatened to take my banking elsewhere. Then they refused the second line. I got the new, second HELOC on my new home with Schwab. The banks are very jittery about HELOCs right now. So, don't alert them about your change. They don't need to know.
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Old 05-08-2012, 10:45 AM
 
Location: Richardson, TX
10,118 posts, read 16,713,055 times
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They may notice you've moved and close it when you update your mailing address.
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Old 05-09-2012, 09:36 AM
 
491 posts, read 1,972,357 times
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Let me be more precise - moving did not trigger the bank's attention to the state of the HELOC, my applying for a new HELOC on my new property did. Of course you need to notify them of change of address. But what triggers your bank's attention to re-examine your HELOC could be anything. Just go about your normal life and don't sweat it. If you are at all worried and need your HELOC you can always drain it and put the money in a MM account, but you'll pay interest on it.

If you have significant equity in the HELOC property, you should be able to open a new line should this bank close your existing line.
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Old 03-30-2013, 10:53 AM
 
1 posts, read 3,333 times
Reputation: 11
The last comment implies that if you owe on the HELOC, the cant close it. Is that true? I thought it was callable at any time (even if you are using the line of credit).
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Old 03-31-2013, 08:51 AM
 
Location: MID ATLANTIC
7,598 posts, read 17,614,249 times
Reputation: 8078
A heloc can be closed to further use at any time with minimal notice. They cannot, however, demand the balance, unless you have violated the terms of the note. In this situation, it will all depend upon when the heloc taken out. It's all about intent.
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Old 03-31-2013, 09:01 AM
 
1,139 posts, read 2,725,942 times
Reputation: 788
Quote:
Originally Posted by dipr View Post
i bought a second home, and iam going to rent out the first home which has a large line of credit on it.

if i tell the bank i moved will they cancel the credit line? it is wells fargo.
Bank may..better to call and find out.
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