Trouble ahead: Tidal wave of HELOC resets about to hit

Home equity lines of credit taken during big housing bubble just before the crash may hit the millions of homeowners with home equity lines of credit with a dramatic spike in their payments.

This comes at a time when even economic bulls are seeing a systemic weakness in the economy.

According to RealtyTrac, 3,262,036 HELOCs with an estimated total balance of $158 billion that originated during the housing price bubble between 2005 and 2008 are still open and scheduled to reset between 2015 and 2018.

Of that, 56% are potentially resetting with higher, fully amortizing monthly payments from 2015 to 2018 are on properties that are seriously underwater.

Read on.

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