CNBC interviews Andrew Housser
In this mortgage refinance video CNBC interviews Andrew Housser and discusses credit card debt, mortgage refinancing, and home equity.
This is a CNBC special report. Is your money safe?
CNBC: Home owner Erik Schultz was hoping to draw on his home equity line of credit to help pay off the property tax of this rental investment. Instead he got a rude awakening in this letter from his lender Countrywide.
Erik: "You will no longer be able to draw on the line. You will not be able to use checks that you may have previously received. ”
CNBC: So Erik had to go to his parents to cover the thousands of dollars he thought he had access to but doesn't anymore. He is not alone, Countrywide financial has sent out letters like this, pulling credit lines from a million customers. And despite the 700 billion dollar bailout package Washington Mutual has just now begun notifying its customers that they will no longer have access to equity lines and credit beyond what they have already taken.
Housser: “Credit is going to get really tight and its going to impact not only people that don't deserve credit but it’s also going to impact people who are credit worthy and should be getting credit. ”
CNBC: Which means that, as bad as things are they could get much worse? Experts say the money is there interest rates are low but once bitten banks are now twice shy, making it harder for borrowers to get that money even if they were promised it to begin with.
Erik: “I was very upset I have always prided myself in being, having the highest level of integrity when it comes to my finances and you know I just felt like I was being you know treated like a like a deadbeat.
CNBC: Yeah, a deadbeat indeed, you know there’s sort of a double whammy involved in all this is lenders start to cap loans that borrowers have already used because now these loans are starting to show up on your credit report as maxed out and that can lower your credit scores and of course will make it more difficult as you try to find loans elsewhere and that is if you can even find those loans elsewhere.