HELOC for MO's
Here is an idea - can anyone punch holes in it?
1. Get a home equity line of credit
2. On a monthly basis, borrow against it (say, low 5-figures)
3. Pay it off with money orders.
Ordinarily, a bank doesn't need a reason to drop your business. But if you have a contract with them for a line of credit (the typical period is 10 years in which you can draw money, after which you have to pay it off over time) I don't think they can just drop you without a good reasons. Likewise, I wonder if they can refuse payments that are in the form of money orders.
I'm sure there are reasons for which they can cancel the HELOC, for example maybe you declare bankruptcy, or are no longer the owner-occupant of the property. Likewise, they have a right to decline payments with good cause, like if it could be drug money. But I don't think they could decline payments merely because "We don't know what you're doing and we don't want to bother to know, just hit the highway" which is what banks typically do if you deposit too many MO's.
Thoughts?