|first heloc assignment, the borrower is a retired "head of treasury". The intro discount rate is 1% for one year based on balance of $10K for three consecutive billing cycles (3 months)...Lender is paying off existing line of credit which is about to mature this fall.|
The balance is under $10K by around $9800. Then, with monthly minimum payment requirement of $100, the borrower would have lost his intro rate of 3.240 immediately. He was not a happy camper. Of course, before he would sign the documents, a sufficient amount of money was transferred from his existing HELOC to meet the requirement and allowed for three months' $100 minimum payments agreed upon.
THEN, another HELOC which was promised by lender to fund by the 15th, but that was not possible as the right to cancel expires on the 15th and the loan will fund on the 16th. He was hot! Just one day made an incredible difference in this man's livelihood. He said that his cash flow dipped this summer because of the fires. His business took a dive and he really needed a temporary source of cash to keep biz afloat. His company is a nationally renowned professional with many awards for his excellence.
I had a couple of other signings yesterday where everything went relatively well except that the borrowers grumbled about all the redundant documentation, delays and communication disconnects.