Vanishing Subprime Lenders

I have read that more than 210 subprime lenders have closed shop since 2006. For the homeowner in foreclosure this means that refinancing options are very limited. Conventional lenders will usually not refinance a foreclosure “bailout.” Historically, subprime lenders have been the ones to take these riskier loans. There are still hard money private lenders out there but they are all restricting their lending guidelines. If your LTV is more than 65% you will find it hard to find hard money. Not impossible but hard. What does this mean for 2008 as we approach the New Year? I think it means that more and more people will find that Chapter 13 is their best or only option. I have written about this option before – just click on Chapter 13 bankruptcy or search for Chapter 13 in this blog if you want to read more. These options are available in the column to the right. For those who want an experienced guide to help them navigate through the foreclosure mess, please email or call me (New York clients only please).

Have a Happy and Healthy New Year!