Squeeze: Lenders pulling back on HELOCs

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News item just breaking on LATimes.com: ‘Tens of thousands of homeowners with home equity lines of credit are getting a rude surprise: They’ve been told by their lender that they can no longer take money out on their credit lines because sinking home prices have put them ‘upside down’ on their mortgages.

More: ‘Countrywide Financial Corp. sent letters to 122,000 customers last week telling them they could no longer borrow against their credit lines because the total debt on the home exceeded the market value of the property. The lender says it is using computer modeling to determine which of its customers would have their cash spigot shut off.’

Tell us about it: Have you been told by your bank or lender you can no longer borrow against a credit line? If you have, and want to tell your story to the LATimes, click here.

Comments, of course, are also welcome. Let loose. Email story tips to peter.viles@latimes.com