Subprime mortgage lenders beginning to fail
By Stephen Otto, Pennsylvania Bankruptcy Attorney on Jan 26, 2007 in General Bankruptcy Information
Are your personal finances strained and moving toward a breaking point? Well, you a certainly not alone. And as the finances of millions of middle class Americans head toward crisis, so goes their mortgage lender. The sector of the mortgage lending industry which suffers the most exposure to financially-stressed Americans is known as the “subprime” mortgage market. In recent years, institutional investors have sunk Billions of dollars into this sector. Now, this money may be in jeopardy. Several major subprime lenders have already closed their doors or filed their own bankruptcies, including Ownit Mortgage Solutions of Agoura Hills, California. Word has it that several other subprime lenders and servicers are on the brink of bankruptcy.
So what do you do when your mortgage lender files for bankruptcy? You must pay very close attention to any notices you receive in the mail. If you call your lender but have trouble getting through or getting your questions answered, you should consider sending a special letter called a “Qualifed Written Request”. For more information, please contact any of the contributors to this blog.
For more information about the financial state of subprime lenders and servicers, please see an article which appeared in today’s New York Times. Tremors at the Door
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