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A list of ailing & defunct lenders, and a website... Buyers & Sellers beware?

By Jane E. Haas

Real Estate Agent with Jane Haas Photography

April 24, 2007 05:36 PM

Has anyone seen this site? It's pretty much an eye-opener, how many companies have gone out of business and how many are ailing...

http://lenderimplode.com/

Think of all the ways this effects current buyers and sellers... Watch out which companies buyers have pre-approval letters from! How many of you have had to answer questions from buyers and sellers about the current delimma the lenders have created? Those of you in the mortgage industry, what advice to you give to your customers when they have questions, or doubts & nervousness, about various lenders now? How can this negative be turned to a positive?

Below is a list of lenders mentioned in the above linked article, among many others!

Structure Funding - Wholesale Lender

MILA - Online-based Lender

Home Equity of America - Prime Second Specialist

Opteum (Wholesale, Conduit) - Alt-A Lender

Innovative Mortgage Capital - Subprime Wholesale Lender

Home Capital, Inc. - Online Retail Lender

Home 123 Mortgage - Retail Subprime Lender (New Century Subsidiary)

Homefield Financial - Alt-A Lender (Wholesale)

First Horizon Wholesale - Non-Prime Wholesale Lending Unit

Platinum Capital Group - Mortgage Banker

First Source Funding Group (FSFG) - Mortgage Banker

Alterna Mortgage - Alt-A Wholesale Lender

Solutions Funding - Sub-prime Lender

People's Mortgage - Retail Lending unit of Webster Bank

Zone Funding - Subprime/Alt-A Wholesale

SouthStar Funding - Non-prime Lender

Warehouse USA - Non-Prime Warehouse Lender

H&R Block Mortgage - Retail Lender (pending)

Madison Equity Loans - Wholesale lender

Sunset Direct Lending - Subprime, Alt A, Wholesale Lender

Kellner Mortgage Investments - Subprime Lender

LoanCity - Alt A, A , Subprime Lender

CoreStar Financial Group - Subprime Lender

Ameriquest - Retail Subprime for ACC

Investaid Corp. - Wholesale Sub-prime Lender

People's Choice Financial Corp. - Retail, Wholesale Subprime Lender

Master Financial - Non-Prime Wholesaler

Maribella Mortgage - Subprime Wholesale Lender

FMF Capital LLC - Non-Prime Lender

New Century Financial Corp. - Subprime Lender

Ameritrust Mortgage Company (Subprime Wholesale) - Non-conforming Lender

Trojan Lending (Wholesale) - Diversified Lender

Fremont General Corporation - Subprime lender

DomesticBank (Wholesale Lending Division) - Non-traditional Lender

Franklin Financial (Wholesale Operations) - Alt-A Lender

Ivanhoe Mortgage/Central Pacific Mortgage - Residential Mortgage Banker/Lender

Eagle First Mortgage - Subprime Lender (Broker)

Coastal Capital - Mortgage Banker

Silver State Mortgage - Wholesaler

ResMAE Mortgage Corporation - Wholesale Subprime lender

ECC Capital/Encore Credit - Wholesale Subprime Lender

Lender's Direct Capital Corporation (wholesale division) - Non-conforming lender; retail operation remains solely as broker

Concorde Acceptance - Dallas-based lender

DeepGreen Financial - Home-equity lender

Millenium Bankshares (Mortgage Subsidiaries) - Community bank with lending operations

Summit Mortgage - Lending Subsidiary of Summit Financial group

Mandalay Mortgage - Subprime lending

Rose Mortgage - Originator

EquiBanc - Subprime subsidiary of Wachovia

FundingAmerica

Popular Financial Holdings - Subprime unit of Banco Popular of Puerto Rico shutting down (Sister company to E-loan)

Clear Choice Financial/Bay Capital

Origen Wholesale Lending - Lending arm of a modular home company

SecuredFunding - Originator and Home Equity specialist

Preferred Advantage

MLN

Harbourton Mortgage Investment Corporation

OwnIt Mortgage

Sebring Capital Partners

Axis Mortgage & Investments - Alt-A Wholesale Lender

Meritage Mortgage - Subprime unit of NetBank

Acoustic Home Loans

Merit Financial - Subprime Lender

Comments(6)

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Lisa Hill

Florida Property Experts - Daytona Beach, FL

Daytona Beach Real Estate

I've been using this information to educate my sellers on what to expect during their time on the market. There are a lot of factors working against them, and we're now at an average market time of 8 months. They have to be priced properly.

Apr 24, 2007 05:50 PM

Jane E. Haas

Jane Haas Photography - Davenport, FL

Good idea. I really feel for people stuck in a short sale. They have to pay taxes on the loss the company takes. Thata can really be a lot of money to put out. Realtors may also have to beware in these circumstances because they may not get paid after a lot of very hard work, if there are leins on a property.

For some, it may be better to rent out a property, rather than a short sale - but they need to find a place to live while their home is being rented!

Apr 24, 2007 06:05 PM

David Petrovich

S.P.O.C.H. a 501c3 Charitable NP - Oakhurst, NJ

"They have to pay taxes on the loss the company takes."

Actually, Jane, this isn't the case in all situations. Yes, the IRS views forgiven debt as taxable income, however, financial hardship (a key criteria in short sale approvals) may render the 'income' exempt from tax.

See my blog: tax implications

Apr 24, 2007 11:17 PM

I know several people who couldn't do that though - they made enough money, but so many people live beyond their means, taxes go up on properties, insurance went higher, etc.... they now have to pay quite a lot of money on this loss. The stupid thing is, one family i know had a buyer for their house for $389,900 and owed $419,000 - the bank wouldn't accept the buyer - then took the house and sold it for $319,900. The family had to pay the tax on the difference for what the bank sold it for! That's tax on $100,000!!! The worst thing is, I can't figure out how on earth the bank would possibly refinance the house for them in the first place.

May 03, 2007 07:46 AM

Michael Mapes-Suntrust Mortgage

Sun Trust Mortgage - Newport News, VA

I really enjoyed your article, I wish my agents here were like you. It would be nice to talk to you sometime perhaps you can give me some advice on how to properly coach my agent/partner.

Michael Mapes

May 03, 2007 07:54 AM

Thanks! That website is actually quite informative.

Ah, i'm an info junkie, obessed with marketing, advertising and promotion. If i'm going to sell someone a house, i like to know everything there is to know about current events surrounding real estate - this happens to be a big concern for a lot of customers, so I've been following how it affects real estate now.

May 03, 2007 08:06 AM

A list of ailing & defunct lenders, and a website... Buyers & Sellers beware?

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