CountryWide Declaring bankruptcy

Financing, Hard Money Lenders, Private Money
1

I just talked to my mortgage broker, and she told me CountyWide is declaring bankruptcy tomorrow. She told me they might be going out of business. Can’t find such information on google, but they do seem to be taking a huge hit.

2

She was probably reading old news from last week that reflected info on Merrill Lynch’s analysis of what could be.
http://www.businessweek.com/the_thread/hotproperty/archives/2007/08/merrill_raises.html

Check out this site for many up to dates on lenders.
http://ml-implode.com/

3

CW is the largest servicer of subprime loans in the country and is ripe for a fall—but it won’t happen on Monday…

Regards,

Scott Miller

4

Merrill downgraded last week followed by bank of america upgrading the stock. countrywide is not only a mortgage machine but has a thrift charter which allows them to go to the discount window for funding as well as the federal home loan banks. this is a company that isn’t going anywhere IMO.

5

im closing a on a house with them on tuesday, hope they arent going under :banghead

6

They have a 12million dollar line of credit available to tap into, there fine…

7

Million?

8

I guess they didnt go under, just closed on my house :beer

9

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=tnBusinessNews&storyID=2007-08-23T003825Z_01_N22188209_RTRIDST_0_BUSINESS-COUNTRYWIDE-BANKAMERICA-DC.XML

10

Buffett eh?

http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_wilson&sid=a.nuTnhMbacA

11

I just signed a contract to sell on one of my houses where the buyer is getting a loan with countrywide too. His score is in the 800s though, so lending him was a no brainer.

12

I just read there was a bail out of 2 Bill for them.

http://www.washingtonpost.com/wp-dyn/content/article/2007/08/22/AR2007082202651.html?hpid=moreheadlines

13

I posted a link to that a few posts up. Maybe someday in the future we’ll be seeing BOA taking over CW.

14

The $2bil infusion from Bank of America into Countrywide is a wise investment. The big banks with lots of cash in their warchests have been given a golden opportunity to buy up the remaining healthy mortgage lenders for 50 cents on the dollar.

15

There’s speculation that BOA is going to possibly eventually be taking over CW though they aren’t capable at this point. As you said its a good time to stock up on CW stock at bottom of the barrel pricing and get ready for the takeover later.

16

I know, seems like a very small number in terms of the loan amounts someone like Countrywide holds. Maybe a typo.

17

a typo, its billions not millions