Why didn’t my bank notify me of my reduced HELOC?
Q: Do banks by law have to give you notice of reductions in a Home Equity Line of Credit?
A: If you mean "advance notification," the answer would be "no," at least in most circumstances. The reduction or termination of a home equity line of credit would not require advance notice if you have signed an agreement permitting the lender to do so when the value of your home has significantly declined below the appraised value, or where a material change in your financial situation has occurred.
That said, the regulation which governs such things suggests that they do need to notify you within 30 days of having taken any "adverse" action on your account.
Somewhere in the paperwork you signed to get your home equity line of credit there is usually a clause which allows the mortgage lender to make a change to your credit line (even terminating it all together) if there is a material change in the property's valuation or even your credit profile. Presumably, you signed or initialed this clause as a part of your agreement.
Some more technical details can be found at http://files.ots.treas.gov/481121.pdf; it is technically a guide for lenders with regard to account management, but does cover your reductions and terminations of lines of credit and the conditions under which these events can occur.
More help from HSH.com
10 best states for home buyersHSH.com recently created a database of the home-buying-assistance programs in every state. From that database, we have assembled a list of the states which offer the most robust set of programs to its residents.
Home price recovery index: Which metros have improved the most, least?Have home prices in your area fully recovered from the declines suffered during the Great Recession, or are they still struggling to make it back to the peak it reached before the crisis?
10 metros where a home costs about $1,000/monthHSH.com identifies 10 metro areas where you can afford the principal, interest, taxes and insurance payments on a median-priced home for only around $1,000 per month.
1000 month - tab names
The salary you must earn to buy a home in 50 metrosHere’s how much salary you would need to earn in order to afford the median-priced home in your metro area.