What happens to my mortgages if CountryWide goes bust?
 

This is a basic quesiton in all probability, but what happens to my mortgages with Countrywide if they go bust? I currently have 2 rather sizeable mortgages with Countrywide, and figure that if they go bust someone will buy my mortgage from them. My biggest question, I guess, is could their going bust harm me in any way?

James

Re: What happens to my mortgages if CountryWide goes bust?
 

[ QUOTE ]
This is a basic quesiton in all probability, but what happens to my mortgages with Countrywide if they go bust? I currently have 2 rather sizeable mortgages with Countrywide, and figure that if they go bust someone will buy my mortgage from them. My biggest question, I guess, is could their going bust harm me in any way?

James

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Shouldn't have much effect on the borrower.

Re: What happens to my mortgages if CountryWide goes bust?
 

[ QUOTE ]
This is a basic quesiton in all probability, but what happens to my mortgages with Countrywide if they go bust? I currently have 2 rather sizeable mortgages with Countrywide, and figure that if they go bust someone will buy my mortgage from them. My biggest question, I guess, is could their going bust harm me in any way?

James

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You are really lucky here. If they go busto you don't have to pay. It's like when the dealer busts in blackjack and you stand on your twelve. Money!!!!!!!!!!!!

You only wish. If they go busto, some reorganized version of countrywide gets your payments, under your original contract terms.

Re: What happens to my mortgages if CountryWide goes bust?
 

[ QUOTE ]
[ QUOTE ]
This is a basic quesiton in all probability, but what happens to my mortgages with Countrywide if they go bust? I currently have 2 rather sizeable mortgages with Countrywide, and figure that if they go bust someone will buy my mortgage from them. My biggest question, I guess, is could their going bust harm me in any way?

James

[/ QUOTE ]

You are really lucky here. If they go busto you don't have to pay. It's like when the dealer busts in blackjack and you stand on your twelve. Money!!!!!!!!!!!!

You only wish. If they go busto, some reorganized version of countrywide gets your payments, under your original contract terms.

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lol i figured, thanks. can lock the thread now.

James

Re: What happens to my mortgages if CountryWide goes bust?
 

Countrywide is the largest lender in the country in terms of dollars. They are NOT going bust. They have 5% of their loans in the subprime market. The market as a whole has 15% subprime loans. They are downsizing because the mortgage business is slowing down a lot due to the overall slowdown of the housing market. Dont believe the hype.

Re: What happens to my mortgages if CountryWide goes bust?
 

I have a savings account with CW.......having said that, believe they could go belly up, and soon.

Re: What happens to my mortgages if CountryWide goes bust?
 

[ QUOTE ]
Countrywide is the largest lender in the country in terms of dollars. They are NOT going bust. They have 5% of their loans in the subprime market. The market as a whole has 15% subprime loans. They are downsizing because the mortgage business is slowing down a lot due to the overall slowdown of the housing market. Dont believe the hype.

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Keep the faith buddy, ride it down to 0. Being the largest lender does not make them immune from a collapse. They are the largest lender for a reason. They were giving every Tom, Dick, and Harry a loan. No documentaion, no nothing. All of their mortgages are suspect...subprime, alt-a, prime. You are just kidding yourself if you think they will recover. Their only out is a buyout. 150 mortgage companies have gone bust, soon to be 151.

Re: What happens to my mortgages if CountryWide goes bust?
 

[ QUOTE ]
Countrywide is the largest lender in the country in terms of dollars. They are NOT going bust. They have 5% of their loans in the subprime market. The market as a whole has 15% subprime loans. They are downsizing because the mortgage business is slowing down a lot due to the overall slowdown of the housing market. Dont believe the hype.

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It's actually 7%. When you include alt-a, the percentage of problem loans is much higher.

You're in denial. What difference does it make how big they are? Have you actually read any of the news stories about them the last six months?

Re: What happens to my mortgages if CountryWide goes bust?
 

Countrywide needs more funding. Maybe Fishhead can put his millions over there to keep them afloat for another week or two.

http://money.cnn.com/2007/09/11/news...ce=yahoo_quote

Re: What happens to my mortgages if CountryWide goes bust?
 

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Countrywide needs more funding. Maybe Fishhead can put his millions over there to keep them afloat for another week or two.

http://money.cnn.com/2007/09/11/news...ce=yahoo_quote

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I will not be helping Countrywide, in fact, just the opposite.

Taking a large majority of funds out of my account there and will transfer than to my E-TRADE savings that will earn 5.05%.

Re: What happens to my mortgages if CountryWide goes bust?
 

Why are you transferring to an account that pays less(if I remember correctly)?

Re: What happens to my mortgages if CountryWide goes bust?
 

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Why are you transferring to an account that pays less(if I remember correctly)?

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For a measly 0.35% more on ones money, Countrywide is not worth the minor worry they are presenting to their customers right now.

Countrywide 5.4%
E-trade 5.05%

Re: What happens to my mortgages if CountryWide goes bust?
 

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Why are you transferring to an account that pays less(if I remember correctly)?

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For a measly 0.35% more on ones money, Countrywide is not worth the minor worry they are presenting to their customers right now.

Countrywide 5.4%
E-trade 5.05%

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Make no mistake about it, there is a huge run on the bank at Countrywide currenly........as there are thousands more thinking the same thoughts as myself.

Re: What happens to my mortgages if CountryWide goes bust?
 

Class-action lawsuit by employees against Countrywide after their 401k's got destroyed. Reminds me of Enron. Hopefully the CEO of Countrywide has the same fate as Kenneth Lay.

http://money.excite.com/jsp/nw/nwdt_ge.j...ias/money/cm/nw

Re: What happens to my mortgages if CountryWide goes bust?
 

Wow, look what happened with AHM:

http://online.wsj.com/article/SB1189...googlenews_wsj

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Thousands of homeowners face an "imminent risk" of losing their homes because of clashes between American Home Mortgage Investment Corp. and its former financial backers, according to Freddie Mac, a government-chartered housing financier.

In documents filed with the U.S. Bankruptcy Court in Wilmington, Del., Freddie Mac said it seized $7 million that homeowners sent to American Home to cover principal and interest payments, property taxes and insurance just before the company's Aug. 6 collapse. American Home quit making payments to tax authorities and insurance companies Aug. 24.

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Guess that's a possibility with Countrywide as well.

Re: What happens to my mortgages if CountryWide goes bust?
 

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Wow, look what happened with AHM:

http://online.wsj.com/article/SB1189...googlenews_wsj

[ QUOTE ]
Thousands of homeowners face an "imminent risk" of losing their homes because of clashes between American Home Mortgage Investment Corp. and its former financial backers, according to Freddie Mac, a government-chartered housing financier.

In documents filed with the U.S. Bankruptcy Court in Wilmington, Del., Freddie Mac said it seized $7 million that homeowners sent to American Home to cover principal and interest payments, property taxes and insurance just before the company's Aug. 6 collapse. American Home quit making payments to tax authorities and insurance companies Aug. 24.

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Guess that's a possibility with Countrywide as well.

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Given how large Countrywide's servicing portfolio is - estimated at over one trillion; note that your loan doesn't have to have been originated by Countrywide to be serviced by them as they had been an active buyer of servicing rights in the secondary market - I wouldn't worry too much. If Countrywide starts screwing up their servicing on a large scale, there will be intervention.

Re: What happens to my mortgages if CountryWide goes bust?
 

OK, major update.......Went into my local CW bank branch today to withdraw a few bucks..........and was greeted by a waiting line ten customer based deep(usually no one in there at all).

I thought "oh [censored]", the run on the bank is in full force here in Clearwater.

Well, the was only ONE employee in the joint and he was handling all the transactions in the front and I could clearly hear what everybodys personal banking transactions were. Get this, ALL of them were making significant deposits into the higher rated CD'S the CW is currently offering, such as 5.65% on 12 month CD's.

Thoughts?

Re: What happens to my mortgages if CountryWide goes bust?
 

[ QUOTE ]
OK, major update.......Went into my local CW bank branch today to withdraw a few bucks..........and was greeted by a waiting line ten customer based deep(usually no one in there at all).

I thought "oh [censored]", the run on the bank is in full force here in Clearwater.

Well, the was only ONE employee in the joint and he was handling all the transactions in the front and I could clearly hear what everybodys personal banking transactions were. Get this, ALL of them were making significant deposits into the higher rated CD'S the CW is currently offering, such as 5.65% on 12 month CD's.

Thoughts?

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They are running major ads on CNBC and the local fishwraps.

Re: What happens to my mortgages if CountryWide goes bust?
 

[ QUOTE ]
Countrywide is the largest lender in the country in terms of dollars. They are NOT going bust. They have 5% of their loans in the subprime market. The market as a whole has 15% subprime loans. They are downsizing because the mortgage business is slowing down a lot due to the overall slowdown of the housing market. Dont believe the hype.

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I'd say they're 15-20% to go bust in 5yr. 10% or so in the next year.

Re: What happens to my mortgages if CountryWide goes bust?
 

The guy at CW told me yesterday that the SUBprime was not the problem ...........it actually was the PRIME loans that were causing the crunch.

Re: What happens to my mortgages if CountryWide goes bust?
 

CW recieved another huge bailout from an unnamed source today.......the stock is up 8% on the day.

Re: What happens to my mortgages if CountryWide goes bust?
 

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Keep the faith buddy, ride it down to 0. Being the largest lender does not make them immune from a collapse. They are the largest lender for a reason. They were giving every Tom, Dick, and Harry a loan. No documentaion, no nothing. All of their mortgages are suspect...subprime, alt-a, prime. You are just kidding yourself if you think they will recover. Their only out is a buyout. 150 mortgage companies have gone bust, soon to be 151.

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Faith, ride down to 0? what are you talking about? I don't own them I just dont think they are going bust. I dont even have a loan with them. If they were to go down, that would be very bad. So can you tell me when they are going bust, that is how soon? Since you seem to know.

Re: What happens to my mortgages if CountryWide goes bust?
 

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It's actually 7%. When you include alt-a, the percentage of problem loans is much higher.

You're in denial. What difference does it make how big they are? Have you actually read any of the news stories about them the last six months?

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I don't think Im in denial, I guess time will tell! The reason their size makes a difference is because as the largest lender, they will obviously have the largest number of loans in default, largest number of subprime loans, largest amount of money loaned to risky borrowers so they are mentioned on the news more than the smaller companies. I think that you have to have some knowledge of the market as a whole and take other things into account when reading stories. You cant just always take everything you read at face value.

Re: What happens to my mortgages if CountryWide goes bust?
 

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[ QUOTE ]

It's actually 7%. When you include alt-a, the percentage of problem loans is much higher.

You're in denial. What difference does it make how big they are? Have you actually read any of the news stories about them the last six months?

[/ QUOTE ]

I don't think Im in denial, I guess time will tell! The reason their size makes a difference is because as the largest lender, they will obviously have the largest number of loans in default, largest number of subprime loans, largest amount of money loaned to risky borrowers so they are mentioned on the news more than the smaller companies. I think that you have to have some knowledge of the market as a whole and take other things into account when reading stories. You cant just always take everything you read at face value.

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It's obvious from this sort of response that you have done zero work on this stock. You are the target audience for gull's "buy index funds" posts, because you are a fish in the stock market.

Re: What happens to my mortgages if CountryWide goes bust?
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]

It's actually 7%. When you include alt-a, the percentage of problem loans is much higher.

You're in denial. What difference does it make how big they are? Have you actually read any of the news stories about them the last six months?

[/ QUOTE ]

I don't think Im in denial, I guess time will tell! The reason their size makes a difference is because as the largest lender, they will obviously have the largest number of loans in default, largest number of subprime loans, largest amount of money loaned to risky borrowers so they are mentioned on the news more than the smaller companies. I think that you have to have some knowledge of the market as a whole and take other things into account when reading stories. You cant just always take everything you read at face value.

[/ QUOTE ]

It's obvious from this sort of response that you have done zero work on this stock. You are the target audience for gull's "buy index funds" posts, because you are a fish in the stock market.

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Feel free to post here when Countrywide goes bust. If you think based on a couple posts in this thread you have enough information to call me a fish in the stock market then you my friend are a fish in the game of life.

Cheers

Re: What happens to my mortgages if CountryWide goes bust?
 

I certainly don't thing we have see the worst of this situation yet........sorry to say.

I also think the stock market is set for a heavy decline soon.

Commodities are the way to go right now.......gold/silver/sugar/corn/beans/coffee to name a few.

Re: What happens to my mortgages if CountryWide goes bust?
 

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I certainly don't thing we have see the worst of this situation yet........sorry to say.

I also think the stock market is set for a heavy decline soon.

Commodities are the way to go right now.......gold/silver/sugar/corn/beans/coffee to name a few.

[/ QUOTE ]

QFT

Re: What happens to my mortgages if CountryWide goes bust?
 

Talked with my CW banker last week and he told me it was the PRIME loans that has the company in trouble, not the SUBPRIME loans.........and he stated they are really hurting right now.

I have been slowly moving my money out of CW and into other financial banks.

Do I think my money is safe at CW?........yes, they are insured by FDIC up to 100,000 per account.

Would I buy there stock.......hell no!

Re: What happens to my mortgages if CountryWide goes bust?
 

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I also think the stock market is set for a heavy decline soon.


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Please define "heavy" and "soon" as you are using it in context. In case you don't have a ticker handy the DOW is within 150 points of an all time high right now.

Jimbo

PS: Unless I missed it you never told me why Jim Cramer's prediction of the DOW at 14548 by years end will cause many people to go broke either.