Devoted to real estate, real estate agents, and all things property related

It was recently rumored that the widely popular and successful Countrywide Home Loans is looking at bankruptcy.  Based on what I know about Countrywide, I’d say hold on to your hats, and wait this rumor out.  Though there are some really fishy things going on, including the chairman making a cool $13 million dollars by selling off his stock, I’d wait before closing the door on Countrywide.  

My feelings about Countrywide are somewhat personal. The lending giant was the first lender to give me a mortgage!  They came in and saved the day after I was turned down by a mortgage broker who told me that I didn’t qualify for a loan that would have ruined me, had I received it.  

Anyway, personal feelings aside, Countrywide had to dip into a 11.5 billion dollar line of credit in order to have liquidity.  Sure, it’s a move that raises questions, and in light of the American Home Mortgage closing, it seems Countrywide may be right behind.  But, I would wait this one out before giving sending Countrywide to bankruptcy.  It’s a tough time for everyone in real estate, and lenders are feeling the heat, without exception. Countrywide, like many other lenders are having trouble selling their loans, and are feeling the effects of the crunch on the commercial paper market. However, if you have access, and can actually “dip” into a 11.5 billion dollar credit line, there may be more hope than it seems!  Stay tuned for more information on the fate of Countrywide.