The Scotsman Guide is reporting that resetting home equity lines of credit (HELOC’s) that originated during the housing bubble are no longer expected to negatively affect the housing market’s recovery as previous news stories indicated. There were many stories (a few reported here) over the past year indicating a potential ticking time bomb from HELOC’s originated between 2005-2008 that were expected to reset between 2015 and 2018. The Scotsman Guide says those fears “have proven to be overblown” because most borrowers have either paid off their loans or have been able to handle the extra payments.
“I still hear from people that this is the second credit apocalypse, but, at this point, I think the HELOC market is quite healthy,” Equifax Chief Economist Amy Crews Cutts told Scotsman Guide News.
