Earlier this week we got a call from the Bank of America loan officer letting us know that they were ready to close on our home equity line of credit (HELOC). This morning, my wife and I stopped in and signed the paperwork. As expected, the closing was completely uneventful.
Since there’s a three day right of recision in our state, we have until close of business on Monday to cancel the contract (of course, we can also close the line at any point without penalty) and it won’t be active until Tuesday. With regard to concerns over using an equity line for overdraft protection, I double-checked and the equity line is subject to the same fraud protection as a standard Bank of America account. This means that if our checking account was ever compromised, we wouldn’t be liable for any losses (either in the account or on the equity line) as long as we report the problem within 60 days.
To be perfectly honest, if we don’t notice fraudulent activity on our account for over two months, then we probably deserve to be taught an expensive lesson.