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Regarding Frontgate Mortgage... 90% of mortgage companies are small 1-5 offices, and most people will not know who they are. Unless dealing with local people. I would post this question within your city forum, as it will be more likely that someone there will have dealt with them.
As far as US bank goes, it's silly to think they'd be in trouble. Banks who do mortgages will not have any issues... ie. Wells Fargo, BofA, US Bank... Mortgage companies who have banks however could be, like Cwide. Granted they are so big that there's no shot of them going out of business. They may get acquired, but near impossible to go out of business.
I'd save your 20 percent and rent for awhile, unless you don't mind if you lose it. Otherwise invest it in gold and silver or buy some and bury it while houses go down to 1/2 or less of the price they are asking now and not getting. Water is going to be at a premium too. Wherever you move, be sure you have your own water, that can't be turned off with the flip of a switch.
Amazingly even people in the business don't seem to be aware of everything crashing all around them. Well it's just started and it's going to keep getting a lot worse. Bad time to buy a house. The U.S. dollar is in big trouble and is currently being created out of nothingness. The Fed doesn't even publish how much - or how little - worthless paper money is being printed any more. All those earnings people think they have might as well just be numbers on a page. There's a very good chance that's all that they are, which means they can be wiped out in an instant. Then how are you going to pay that 80 percent you owe on that house? In fact the dollar might not even be around a year from now. The powers that be are planning to get rid of it and combine North America with new currency.
No, I've been a real estate broker since 1985 and always felt it best to have another house lined up in escrow before selling the last one concurrently. In fact I held off selling my own house for 2 years for that reason - but lost 100k in the meantime because of the downturn in the market. Has it stabilized in the meantime? No way, now it's just closer to the edge of the cliff and I can't get out of here fast enough. Here's some info to keep you entertained and if this message is helpful let me know.
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August 03, 2007: "In a news release issued last night, American Home Mortgage said that that it would lay off all but 750 of its 7,000 employees “in light of liquidity issues resulting from disruptions” in the secondary mortgage market ... A.H.M. is the latest home lender to fall this year and comes as other companies in the mortgage business are sounding alarms." American Home Mortgage Says It Will Close - New York Times
Top 10 U.S. Foreclosure Rankings by State - April 2007
State ........Total .. per homes ... change
Nevada ......... 3,737 ... 232 ... 224.39
Colorado ........ 5,826 ... 314 ... 57.20
Connecticut .... 4,207 ... 329 ... 198.79*
California ...... 30,505 ... 400 ... 245.12
Ohio ............. 11,431 ... 418 ... 135.21
Georgia .......... 7,151 ... 433 ... 38.85
Florida .......... 14,318 ... 510 ... 71.47
Arizona ........... 4,129 ... 530 ... 142.74
Illinois ............. 8,298 ... 589 ... 28.63
Michigan .......... 6,876 ... 614 ... 30.50
Top 10 U.S. Foreclosure Rankings by Metro Area - April 2007
Ranking Metro Area
1 Stockton, CA
2 Vallejo-Fairfield, CA
3 Greeley, CO
4 Riverside-San Bernardino, CA
5 Las Vegas, NV
6 Modesto, CA
7 Sacramento, CA
8 Merced, CA
9 Akron, OH
10 Denver, CO
I can't agree with you more, My husband and I have been mortgage lenders in Florida for sometime now, and as I see my investors dropping like flies and having to put an X on the Lenders Name of my list, I cry, because this is only the beginning. Many do not or cannot comprehend what is actually going on because they feel unaffected by the market. We just purchased a home in TN recently due to the start of the crash over there, I knew this was coming since my best bank closed in November, we closed on the new property in February moved in May and well the other house is a part of the statistics now. Unfortunately our governement could have avoided some of this with madating property taxes a little better, but no one wants to be blamed when s*** hits the fan. Our home had property tax of $8K a year and insurance was at $6900 last year. So who in their right mind would want to purchase a home in this market with those figures let alone home prices and rates? This is why we got out of it fast, we moved to an area with free water, no sewer, hubby got a job (at a consumer bank) and did all this before our profit margins started to diminish. I do mainitain that it will get better in a couple of years, but the wave isn't over yet.
As far as US bank goes, it's silly to think they'd be in trouble. Banks who do mortgages will not have any issues... ie. Wells Fargo, BofA, US Bank... Mortgage companies who have banks however could be, like Cwide. Granted they are so big that there's no shot of them going out of business. They may get acquired, but near impossible to go out of business.
Hmmmm. I got a notification from my company a while back that Wells Fargo stopped originating sub-prime, cut a huge amount of there products out and they closed up a percentage of there store front mortgage shops. I know the one in our town is now gone.
I personally think the only ones that went out of business are the ones that probably should have because they were approving loans for people that probably shouldn't have mortgages. I see it as a kind of house cleaning to avoid what has happened in the handful of "volatile" markets from happening nation wide. I think it will also "clean house" of those LO's that were in the business only to make a quick buck at any cost no matter if it was ethical or not. I see this as, yes a difficult time with all the sudden changes in qualifying requirements, but also a good, necessary thing.
being big has nothing to do with them going out of business or not.
the bigger they are the harder they fall!
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