Are HELOCs the next battle ground?

USAPlaceExpert

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News via the Office of the Controller in the United States has published in new report that there are massive amounts of HELOCs (Home Equity Line of Credit) that will soon have to start paying not only interest on their HELOCs, but principal as well. On top of that, the amount of principle to be paid in each of the next 5 years is forecast to double almost each of the years before it.



That would mean that many people who are having trouble keeping a home now that may be underwater, may now have to start paying prinicpal on a HELOC that may yet to have recovered to even ground. Ouch.



What this article needs to be balanced by is the fact that 30% of the homes in the United States do not have a mortgage and are owned free and clear. Could this be another case of some really bad apples spoiling the entire bunch?



Find out here.
 
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