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Home Equity Loan reported as Asset

I have Quicken pulling from my bank, which provides my checking, savings, and Home Equity Loan. Whether I display the HELOC as a Liability or a Credit, it still adds the loan balance as a plus in my Net Worth. How do I fix this?
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Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited January 26
    How is the HELOC dollar amount displayed in the Account Bar (vertical column to left or right of the screen).  The numbers should be in red with a minus sign in front of them.  Are they?
    How is the HELOC Account being updated?  Is information directly downloaded from the financial institution or is it a "manual" loan where entries are coming as the offset to checking Account transactions?
  • PoconoChuck
    PoconoChuck Member ✭✭
    The amount is black, a positive value. Compared to my credit card balance, which is correctly showing in red, the HELOC is displaying incorrectly.

    The account is updated via direct connect with my bank.
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    edited January 26
    Like your credit card, your HELOC is a liability ... money that you owe.  And the dollar amounts in your HELOC account register should be RED, like in the credit card.
    What color is the balance amount for the very first transaction in the account?  It should be red and that 1st transaction should be a CHARGE.
    Also, see if your lender downloaded the entire USB credit line as a transaction.  They shouldn't have done so, but I've seen it happen before.  If this is the case, simply take a backup and then delete that transaction.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited January 26
    Generally, I believe, most SuperUsers advise against using the "download" feature with loans.  When you do that you are entirely at the mercy of whatever the financial institution downloads to that Account, which may be wrong, as might be the case here, and you have no access to the loan's register.  
    Depending on what you find in response to @NotACPA 's questions, you might want to convert that loan to a manual loan in order to get the balance correctly stated.
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    @Tom Young  The restrictions on downloading into loan accounts doesn't apply to HELOC or LOC accounts ... which are set up in  Q in a manner similar to credit cards.

    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • PoconoChuck
    PoconoChuck Member ✭✭
    Thanks to @NotACPA and @"Tom Young"; you have guided me to examine the register, and it is possible I may have damaged my entire portfolio.

    I had my ledger for several months and have only taken a greater interest in my bottom line. I have the accounts set up for web-connect, and recently reconciled them all. Prior to the recon I had several years of data, but now I have only since October. Where the HELOC is concerned, the earliest transactions are payments, and the Opening Balance is also shown as a PAYMENT.

    I may restore a backup from before the reconciliation and start over.
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    The HELOC accounts that I previously had (switched to a regular mortgage last year) my lender (US Bank) never downloaded the interest charges, only the total payments that I made.
    SO, I had to manually input the interest amount each month and then my payment offset that and some amount of principal.
    Those early payments should be CHARGES,  they increase the amount that you owe ... just as a credit card charge increases what's owed.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
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