So many signs

A couple of years ago I went through the exercise of applying for a Home Equity Line of Credit -HELOC for short.  Lots of paperwork, but a comfortable line of credit was extended.  I did this as a safety net of sorts, you know, "just in case" I should need some cash in a hurry.  HELOC's are based on the value of your home and the equity you have in it.  

Las Vegas has seen a drop of at least 30% in home values in the last year.  Yes, 30%.

Today I got a letter from the bank that my HELOC was "restricted"  since the value of my home has dropped so much and the equity is now not enough to qualify.  It doesn't matter what my credit score is, or how much money I'm making or how much I have in the bank, or even that I haven't used that line of credit even once and owe nothing on it - simply the drop in value of the home.  "Restricted" means I no longer have access to that account.   

So much for that safety net.  Amazing to me that so many bad sub-prime loans were made that the world economy has been brought to it's knees, but NOW they are paying attention to this kind of loan.    It seems as though not only is credit not being extended to people, but now they are actively taking back any credit that had been extended.   Yep, it's going to get much worse.  My car is leased through GMAC.  Hmmm......can they call that in?  What really bothers me is we are at the mercy of people making huge salaries, bonuses and now "retention fees" while my credit worthiness, lifestyle and peace of mind are trampled.