I used to own a condominium, on which I had a mortgage (from a mortgage company), and a home equity line of credit from Bank of America. Years ago, I sold the home, and paid off both of these debts. I had assumed that the home equity line of credit had been closed. It had not!
I just got contacted by Bank of America, which informed me that they are closing my home equity line of credit now. That means that at any time in the last few years, I could have written checks against my home equity line of credit, even though I no longer own the home as collateral.
Is this just an oversight by Bank of America, or is this standard procedure? If you sell a home on which there is a home equity line of credit with a zero balance, does the bank allow you to keep the home equity line of credit open, maybe in hopes you'll buy another home???