redstone@pon.net
04-11-2008, 02:52 PM
Hello-
I wrote a check on my home equity line of credit on april 2nd and deposited it into my credit union and they put a 5 day hold on it. Two days later I got a letter from the lender I have the HELOC with saying that they were using AVM models on property in my area and determined that my property had lost too much value and they were freezing my HELOC as of April 1st. Mind you I received this info on the 4th for the first time. After 5 business days my credit union released the funds and I removed them to another institution with better savings rates to park them until I needed them to improve my property.
Now, after 9 days the credit union called and said my lender was not going to honor the check. I know for a fact (I'm in the mortgage business) that the AVM never analyses my property correctly since it's an acreage property located in the same neighborhood as subdivision properties.
My credit union wants me to return the money. I don't feel I did anything wrong since I deposited that check in good faith. I think the lender should honor it and not make me go through a costly appeal process - getting appraisals at my expense, etc.
What are my rights? Does the credit union have the right to ask me for the money back when they released it to me already?
Thank you for any help!!! The credit union is waiting to hear back from me this afternoon.
I wrote a check on my home equity line of credit on april 2nd and deposited it into my credit union and they put a 5 day hold on it. Two days later I got a letter from the lender I have the HELOC with saying that they were using AVM models on property in my area and determined that my property had lost too much value and they were freezing my HELOC as of April 1st. Mind you I received this info on the 4th for the first time. After 5 business days my credit union released the funds and I removed them to another institution with better savings rates to park them until I needed them to improve my property.
Now, after 9 days the credit union called and said my lender was not going to honor the check. I know for a fact (I'm in the mortgage business) that the AVM never analyses my property correctly since it's an acreage property located in the same neighborhood as subdivision properties.
My credit union wants me to return the money. I don't feel I did anything wrong since I deposited that check in good faith. I think the lender should honor it and not make me go through a costly appeal process - getting appraisals at my expense, etc.
What are my rights? Does the credit union have the right to ask me for the money back when they released it to me already?
Thank you for any help!!! The credit union is waiting to hear back from me this afternoon.