A decade after the bubble, home-equity line delinquencies jump
When mortgage mania was at its peak in 2005, millions of homeowners tapped the equity in their homes through home equity lines of credit.
It’s now time to pay the piper.
HELOCs come with 10-year grace periods, so 2015 marked 10 years after the frothiest borrowings. In March, delinquencies were up 87% compared to a year ago among 2005 second lien HELOCs – those that stand behind a mortgage on the property – data provider Black Knight said Monday.
HELOCs taken out in 2005, 2006, and 2007 make up 52% of all active lines of credit, suggesting delinquencies could remain elevated for some time, Black Knight said.
There are about 850,000 2005 home equity lines, and 1.25 million each for 2006 and 2007, totaling about $192 billion in all.
Rest here…
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