Question

I received a letter from E-Trade bank dated September 29, 2009 saying that the further withdrawal of funds against my credit line was being suspended because the market value of my home is no longer adequate to support the $70,000.00 line of credit. At the time of the loan the townhouse was valued by the appraiser at $202,000.00 as indicated on the loan documents. E-Trade bank offered me a $202,000.00 line of credit at that time. I did not need that much money so I asked them for only $70,000.00. As they indicated and as we all know house prices have fallen considerably; however, they are incorrect that the value of the home is no longer adequate to support the $70,000.00 line of credit. Houses in my complex that are identical to mine are currently selling for $121,000.00. That is 172% of the loan amount and more that adequate to support the loan. E-Trade bank provided me no proof whatever that my townhouse is under a value that the credit line would support. I have never missed a paym