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— Step 1: Apply for Your BLOC —
Apply for a home equity line of credit account to function as your BLOC

You will use your BLOC as your money account:

  • all income earned will be deposited into the credit line.
  • all expenses paid, including your regular monthly mortgage payment, living expenses, insurance, etc., will be paid from your credit line.
  • money left over will be treated as discretionary income to reduce your BLOC balance
BLOC Required Characteristics
  • must be an open ended Home Equity Line of Credit
  • must have an interest only payment option
  • must be attached to the primary residence in a second lien position
  • must be a variable rate account
  • must have an credit line amount of $20,000 or more

    download this BLOC characteristic sheet to use when shopping for your home equity line of credit


    Important Note: if you have an existing home equity line the has the above characteristics, it can be used as your BLOC.

    If you have an existing home equity loan that is being paid down, shop for an BLOC to payoff and close your home equity loan.

    Your new BLOC must be in a second lien position behind your first mortgage.
Shopping and Finding Your BLOC
  1. go to our home equity center
    for more information about home equity product terms and features

  2. download our shopping sheet
    that lists the BLOC characteristics and helps you shop lenders for best terms

  3. use our LTV calculation to estimate how much
    you may qualify. You will need a credit line of $20,000 or more. Be prepared to get a 100%LTV equity line if needed to payoff existing debt and maintain an open credit line of $20,000 or more

  4. use our network of lenders to shop your BLOC
    be prepared to negotiate best terms and rates

    note: don't get hung up on interest rate. The MMA program will minimize the interest rate charges since income going into the account will keep the average daily balance down



go to Success Plan: Step 2
 

Home Equity Application

BANK EQUITY for Debt Relief