I feel so bad for people caught in the mortgage collapse
August 1, 2007The collapse this week of American Home Mortgage has me just feeling sick for all the home-buyers caught up in its demise. The company couldn’t fund $300 million in mortgages on Monday, and another $450 million on Tuesday. Meaning some three-quarters of a billion dollars in mortgages went up in smoke on just those two days.
Those aren’t just numbers, those represent real people who thought they had arranged mortgage financing for a new home. Only to have it vanish when they tried to close their loans this week.
I feel especially bad for any first-time homeowners who are part of that group. This collapse turned what should have been the joy of buying their first home into the nightmare of having to scramble and find another mortgage lender.
What’s worse of course is that this may not be the last. American Home wasn’t a subprime lender, they targetted people between prime and subprime. If they are in this much trouble, you’ve got to think that there’s subprime lenders in as bad if not worse shape. I’m guessing there’s a string of bad news coming soon from other mortgage lenders. Meaning heartache for even more home-buyers.
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You can check out thehousingbubbleblog.com to learn more about the debacle. I’ve been reading that blog for years. I tried buying in early 2004 and decided not too because I felt like things were out of control. Well I was right.
I like your oracleportalsucks blog. I posted some things there, but it doesn’t look like anyone is reading it.
You can also check out ml-implode.com.
You may feel bad, but if the fed bails everyone out, it can get bad for joe sixpack. If the fed injects lots of cash into the system, inflation occurs and that makes everything more expensive.
Like Iraq, there are no good options now.
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