Posted By: MackenzieS
HELOC proceeds to purchase residence - 07/20/06 01:01 PM
Has anyone heard of the restriction that prohibits a customer from using the proceeds of a HELOC to purchase a residence? It is stated in our Credit Agreement, but I'm not sure where the source of this restriction comes from. Any help would be greatly appreciated.
Posted By: MackenzieS
Re: HELOC proceeds to purchase residence - 07/20/06 03:26 PM
I'm not getting very far with that web page. I have tons of documents from the UCCC and I'm just not being able to put my finger on it.
Posted By: Seeker
Re: HELOC proceeds to purchase residence - 07/20/06 05:26 PM
Sorry I can't be of more help. I have not heard of the issue and am in compliance in Oklahoma. If anyone knows more, I hope they'll post a reply.
Posted By: MackenzieS
Re: HELOC proceeds to purchase residence - 07/20/06 07:28 PM
We use Harland (Laser Pro) for Loan documentation and the language defaults into the Credit Agreement when a HELOC is being prepared. Of course we can't quite seem to squeeze it out of Harland what statutes they are relying on for putting this restrictive language in the form. All they will say is that Oklahoma and Louisiana have the same restriction.