Home ATM is open for business again:

Home equity lines of credit up 21 percent from last year. Up 55 percent in the Los Angeles and Orange County metro areas.

http://www.doctorhousingbubble.com/heloc-home-atm-open-again-home-equity-lines-of-credit-surge/

I love the antiquated notion that most people buy their homes to live in forever. To setup roots. But the underlying reality is very different. Most people stay in their home for 7 to 10 years. In places like California, a first home purchase is considered a “starter” home until you property ladder your way up to your dream home. We recently noted that Los Angeles and Orange County are the most overpriced rental markets based on local wages and employment prospects. People live beyond their means to different degrees. So it is no surprise that recent home equity line of credit (HELOC) data shows that HELOCs surged 21 percent year-over-year. Not at all surprising, HELOCs for the Los Angeles and Orange County metro areas jumped 55 percent. We barely have one manic year of prices and all of sudden homeowners are ready to tap out their equity. Setting roots? More like leveraging your way into a life built on debt that crumbles once the next recession hits.

HELOcs are up nearly 21 percent nationwide. Yet in the LA/OC metro areas they are up 55 percent. Keep in mind that when you tap out equity, you are essentially locking in more debt secured by your home. Say for example this is your situation. You purchase a home for $300,000 and the home is now worth $500,000. You tap out $50,000. That $50,000 does not come for free.