Business Bankruptcy

08 Feb American Home Bankruptcy: Consumers Still Can’t Catch a Break

Just because your mortgage servicer is bankrupt and your loan is nearly worthless to other lenders, don't expect you'll catch a break. That's the lesson coming from the latest round in the American Home Mortgage bankruptcy. As we have noted before, American Home Mortgage Investment Corp. is in bankruptcy in Delaware. Part of the case now involves the company selling off its loan portfolio to pay back creditors. A sale of a pool of 424 mortgages is scheduled for February 26th, with a face value of $152 million, according to the Associated Press. The loans will be sold at a steep discount in the current bear market.
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