Available credit on a HELOC we have on a rental house in Central Florida dried up about 6 months ago. We received a letter from Century Bank telling us they would grant no additional draws on the funding. We originally got that LOC specifically for investment purposes in our park, and have a signficant amount of it invested. Luckily they did not have a call, so we just receive our invoice monthly billing for interest only. We pay more than that, but that is our preference.
We were not overly upset about the situation. Our first mortgage and HELOC are about the amount of money we could currently sell the house for - not anywhere near what it was worth when we got the loan. It is quite possible that if we sold today we would have to take money to the closing table. (Instead, we have a new renter for June 15th.) We had stopped tapping the line because we knew what was happening with values in the area, and did not want to get boxed in.
Karl had a great point - we would have had to scramble to get the funds to cover our investment we made via the line.