Can The Bank Freeze A Reverse Mortgage | Can The Bank Freeze An Equity Line Of Credit

Can the bank freeze a reverse mortgage? Is that the same as saying can the bank freeze an equity line of credit?
There is a difference between the HECM reverse mortgage line of credit and a bank HELOC, or home equity line of credit, when it comes to freezing the availability of funds.
A bank HELOC is typically open for an initial period of time, typically 10 years and then the line gets shut down, you can't use it any longer. The bank can prematurely freeze the line of credit for other reasons as well, such as a drop in home values in your area, without warning, and stays closed.
However, on the HECM reverse mortgage line of credit, your available line can't be closed due to property values dropping, that is against HECM rules. Your line of credit availability on the HECM line of credit stays open for the rest of your life regardless of home value and there is no introductory period where the line is open as there is on the HELOC.
The HECM reverse mortgage line of credit due to this fact, becomes a more dependable source of funds when you need it down the line.
There are other reverse mortgages besides the HECM line of credit, where the line is open for an introductory period of time than gets frozen and if property values drop the line can also be frozen. Again, these are non-HECM reverse mortgages. The HECM reverse mortgage line of credit can stay open for your lifetime. A bank HELOC can be frozen if values drop and has an introductory period and then gets frozen.
I have a more detailed video Bank HELOC vs Reverse mortgage line of credit that explains this, https://youtu.be/_EQz7FuuOGc
For additional reverse mortgage education and how reverse mortgages work I have another video as well, https://youtu.be/av4KPqPVfeE
I originate the California reverse mortgage solely since I was born and reside in California.
If you have a scenario or question on California reverse mortgages, feel free to click the below URL and I will get back to you ASAP.
https://californiareversemortgage.biz/contact-me-today/
Thanks for watching!
Kevin Walton
C2 Reverse
www.californiareversemortgage.biz
805-276-1942
This information is not intended to be a substitute for legal, tax or financial advice. Consult with a qualified attorney, accountant or financial advisor for additional legal or tax advice. These materials are not from HUD or FHA and were not approved by HUD or a government agency.
* There are some circumstances that will cause the loan to mature and the balance to become due and payable. The borrower(s) must continue to pay for property taxes and insurance and maintain the property to meet HUD standards or risk default. Credit is subject to age, minimum income guidelines, credit history, and property qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change.
Kevin Walton
NMLS #245923
Phone: (805) 276-1942
C2 Reverse Mortgage Corporation
12230 El Camino, Suite 100, San Diego, CA 92130

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Kevin Walton, Residential Mortgage Loan Originator, NMLS #245923 // C2 Financial Corporation NMLS #135622
Kevin Walton, Residential Mortgage Loan Originator, DRE #, 01453270//C2 Financial Corporation DRE#, 01821025
Corporate: 858-312-4900 // www.c2financialcorp.com/
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This licensee is performing acts for which a real estate license is required. C2 Financial Corporation is licensed by the California Bureau of Real Estate, Broker # 01821025: NMLS # 135622. Loan approval is not guaranteed and is subject to lender review of information. Loan is only approved when lender has issued approval in writing. Specified rates may not be available for all borrowers. Rate subject to change with market conditions. C2 Financial Corporation is an Equal Opportunity Mortgage Broker/Lender. The services referred to herein are not available to persons located outside the state of California.

As a broker, C2 Financial Corporation is NOT approved by the FHA or HUD, but C2 Financial Corporation is allowed to originate FHA loans based on their relationships with FHA approved lenders.