Can a Home Equity Line of Credit Outlive The Home?

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???
--
Steven L.
Email: snipped-for-privacy@earthlinkNOSPAM.net
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Steven L. wrote:

First, it was an oversight on the part of the attorney of the buyer. The lien on the condo should have been released and the equity line closed at the same time. I suppose the lawyer's only concern is to deliver clear title to his client, i.e. no lien other than the client's mortgage, but still the bank should have shut it down. No, they don't let you float an equity line with no property under it. Joe
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

BeanSmart.com is a site by and for consumers of financial services and advice. We are not affiliated with any of the banks, financial services or software manufacturers discussed here. All logos and trade names are the property of their respective owners.

Tax and financial advice you come across on this site is freely given by your peers and professionals on their own time and out of the kindness of their hearts. We can guarantee neither accuracy of such advice nor its applicability for your situation. Simply put, you are fully responsible for the results of using information from this site in real life situations.