Mortgage Companies Going Bankrupt In The U.S

Mortgage companies going bankrupt in the U.S. ? Is Canada next?

This is a really good time to do money blogging... with mortgage companies going down it's pretty scary for home owners who are in deep with their mortgages...

My recommendation is to get some cash reserves in the bank, to give yourself peace of mind with regards to your house payments.

More to come.

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2 Comments
On Aug 24, 2007, Monty Loree Said:
hey j. bass, As with every business, those mortgage companies who have a strong balance sheet will ride out the mortgage storm... For consumers who have mortgages it's the same thing... those who can afford their mortgages and have reserves to carry them will ultimately do the best. Why Building Equity at the Expense of Liquidity Can Lead to Bankruptcy I get a sense that millions of people have ridden the wave of getting mortgages they can't afford, and are going to pay the price for that in the near future. Another problem with the mortgage companies becoming illiquid is that they're going to start jacking up the interest rates to cover their bad debt costs... It's going to be an ugly downward spiral.
On Aug 23, 2007, J.Bass Said:
B. Mother of Mercy, is this the end of the Panic " mortgage broker Edward G. " little Ceaser " Robinson The Good News Is - The MARKET DEALS WITH A SLEW OF BAD NEWS - and remains firm . This is News - you can use : The announcement Thursday of three major dealers closing their doors ( mortgage businesses ) did not sink the Dow. This is an important change in market psychology / sentiment . It signifies that the market has reached a turning point when bad news - and two weeks ago this would be terrible news - is not greeted as confirmation the general market will melt. Mortgage originators, house builders and second tier lenders are in big trouble . It appears that their misfortunes will continue to play out for at least a year or more - but the investor community is now focused on the benefit of a Fed rate cut and the news some lenders are continuing to arrange loans. As we have written Wells Fargo and Bank of America will gain as eighty competitors are out of business. Bank of America announced an injection of $2 Billion dollars in Countrywide. There are winners and losers - so i can repeat my Damon Runyon advice : " The race is not always to the swift, or the battle to the strong - but that's the way to invest . "