Another Mortgage Lender Bites the Dust?

It seems that the only thing we hear in real estate news right now is how mortgage lenders are falling apart as delinquency rates rise in borrowers. American Home Mortgage shares dropped 90% on Tuesday and it's feared that bankruptcy is not out of the question as the disrupted credit market affects another prime loan lender. The company, which recently commanded 2.5% of the US mortgage market, said Tuesday that it's "out of cash" as many of it's financial backers refuse to let the company borrow more money, and some are asking for their money back. Shares of several mortgage lenders fell dramatically today after the announcement by AHM, and a large number of sub prime lenders continue to "disappear" as more borrowers default on home loans.

Last week American Home Mortgage laid off more then 400 employees, and has currently suspended funding loans. As of Tuesday the company expected to be was unable to finance more then $450 million in mortgages for home buyers. American Home Mortgage is known for funding loans to those with less then perfect credit and little of no income documentation. They specialize in prime and near prime loans, as well as adjustable rate mortgages, which are now problematic for some as interest rates rise.

Yes, it's a crazy world out there right now! The Tucson Real Estate market suffers from the same mortgage woes, but buyers need to be ready to take advantage of the opportunities that do lie in the market. If you're in a position to buy in the Tucson Home Market and are already qualified for a loan, there are currently 8600 active listings to choose from. Let the current market work for your benefit!