Mortgage Companies Filing for Bankruptcy

Thanks to all my clients and friends sending emails and calling about mortgage companies filing for bankruptcy. Many of my clients are taking joy from this news. Is it really surprising that what goes around comes around? When clients can't make their monthly payments, they often don't have any options ... many are having to let their homes go back to the creditors. With so many houses on the market, those homes are not selling. Many of my clients have tried everything before coming to see an attorney to talk about bankruptcy. This is not any one's first choice ... it is most of their only option to get a fresh start.

So, now mortgage companies as reaping the the rewards of their lending policies and loan packages. I have real estate agents and their clients calling and begging me to help them ... as the mortgage broker told them that they did not need to worry about the interest rate increases because they would be able to re-finance before the two years. Now, money is not as readily available and those loans are not to be found. I hate those 2 year fixed rate with the 6 month ARM rates. I believe that the mortgage brokers thought that they were helping the borrowers, because many of them used the same loan package on their own homes. But now ... everyone is hurting. The holders of the notes are, well, some are filing for bankruptcy.

I expect more news about lenders filing in the next year. With foreclosure rates staying at record highs ... the only ones I see winning are my counterparts doing the foreclosures. ... And now I wonder if they will be paid all that they are owed as the mortgage companies file for protection under bankruptcy ... even those law firms may take a hit ... and not receive all of their fees ... it all depends on the bankruptcy cases of the lenders.

The reality that when everyone is losing their home to foreclosure we all lose something. Home ownership is a big American dream ... I have seen people do everything they can to save their home ... not just because it is a place to live but because part of home ownership is the dream that you have one part of this earth and it is yours. Don't give up hope ... many people will own a home again. Something will change ... time will tell.

I think that I need to get a real estate blog up ... I will see what this week holds and maybe I can start working on it.

Have a great weekend.

Susan