Monday, August 06, 2007

Sub Prime Woes Worsen

Just when many thought the sub prime debacle was about done, American Home Mortgaage fired its 6200 workers and went into Chapter 11 Friday, and issued a cease funding order, effective immediately.
AHM,the 10th largest mortgage company in the country traded at 39/share a year ago, and 12/share a week ago, was apparently the subject of multiple margin calls last week. It was a major player around the country and here in Charlotte. A lender friend told me of a closing that had taken place with a local builder, but that AHM wouldn't fund.

This seems an excellent time to share a terrific post on credit, what to do now if you are planning on buying a home in the near future. Rhonda Porter walks you through a step by step guide to getting the best rate, if you are a 1st time buyer, a move-up buyer or are refinancing a variable rate in the next 6-12 months. Here is what you should be doing now, its well worth the read.

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