Author: Michael Peterson
Article:
People's Choice Home Loan, a California based bad credit
mortgage company filed for Chapter 11 bankruptcy protection, on
Tuesday, according to papers filed with the U.S. Bankruptcy
Court for the Central District of California.
The company listed $100 million in debt and $100 million in
assets. Wachovia Corp, Residential Funding Corp., Credit Suisse
and Bear Stearns Mortgage capital Corp. were listed as creditors
in the company's filing. Wachovia Corp. was listed as the
largest unsecured creditor and the amount was not listed.
Other bad credit mortgage companies that have recently filed
Chapter 11 bankruptcy protection include ResMae Mortgage Corp.,
Ownit Mortgage Solutions Inc. and Mortgage Lenders Network USA
Inc.
Luckily,it appears that the bad credit home loan industry crisis
have not affected the bad credit car loan industry. In the past
banks and other financial institutions used subprime mortgages
to back their bonds. For this reason, the subprime dilemna
extends into many financial sectors that do not necessarily make
bad credit home loans.
Many of these financial instutions also provide warehouse lines
of credit to bad credit mortgage companies. The default
provisions, in the these credit lines agreements, have crippled
many bad credit home loan companies like New Century, who no
longer is accepting mortgage applications and has been delisted
from the NYSE.
Connecticut, Maryland, Rhode Island, Tennessee, New York,
Massachusetts, New Hampshire and New York have issued
cease-and-desist orders to New Century. The company has also
reported that they are facing investor lawsuits and a criminal
probe into their accounting practices. Many industry analysts
have forecasted that the company is considering the almost
inevitble prospect of bankruptcy.
Accredited Home Lenders is another subprime mortgage lender that
is struggling to keep their heads above water. They were hit
hard with default provisions, in their warehouse credit line
agreements and now because they failed to file their 2006 10-K,
on time with the SEC, they face delisting from Nasdaq. This has
caused a liquidity crunch and the company continues to struggle.
As Accredited faces a class action lawsuit, they are desperately
seeking to liquidate their 2.7 billion dollar loan portfolio at
a substantial discount. The company reported on March 16th that
they had found a buyer.
The problems in the subprime mortgage industry are now affecting
home builders, according to a well followed real estate industry
report.
The "unknown" with the subprime mortgage industry meltdown is,
whether it will affect the bad credit car loan industry. If
investors continue their subprime mortgage abstinence, will they
ultimately turn away from the other subprime finance industry
sectors. Every bank and institution is connected to subprime
financing in one way, or another even if they simply make loans
to subprime companies.
The next year will interesting to say the least as real estate
prices decline and/or remain flat in the majority of the
country, money becomes tighter for the subprime population and
montly mortgages start to adjust.
If you need a bad credit car loan, or a bad credit auto loan now
may be the best time. If you are having problems making car
payments negoitiate now with your bad credit car loan company,
or see bad credit car loan refinancing to get a lower payment.
Click
here
for
bad credit car loan, or
bad credit auto loan
Click
here
for
bad credit mortgage, or a
bad credit home loan
About the author:
Michael Peterson works as a freelance writer for two websites:
BadCreditBMWLoans.com, a website that
specializes in helping people get
bad credit auto loans.
EmbarkFinancialllc.com
No comments :
Post a Comment