HELOC On Hold

Posted: January 31, 2008 at 4:03 pm by Somesh

LA Times is reporting :

“Tens of thousands of homeowners with home equity lines of credit are getting a rude surprise: They’ve been told by their lender that they can no longer take money out on their credit lines because sinking home prices have put them “upside down” on their mortgages.

Countrywide Financial Corp. sent letters to 122,000 customers last week telling them they could no longer borrow against their credit lines because the total debt on the home exceeded the market value of the property. The lender says it is using computer modeling to determine which of its customers would have their cash spigot shut off.”

Tousa Files Bankruptcy

Posted: January 29, 2008 at 12:50 pm by Somesh

Reuters is reporting

“Florida-based home builder TOUSA Inc TOUS.PK said it is filing for protection under Chapter 11, as part of a proposed restructuring, in the wake of the crumbling U.S. housing market.

The filing includes TOUSA Homes Inc, Newmark Homes LP and entities that represent all their brands — Engle Homes, Newmark Homes, Fedrick, Harris Estate Homes and Trophy Homes.”

First of the public builders in this cycle.
Expect to see many more this year and next.