Bankruptcy & Countrywide

A quick post before I head over to CNBC:  Two NYT articles caught my eye this morning on the theme of consumer bankruptcy:

Filings for Bankruptcy Up 18% in February  http://www.nytimes.com/2008/03/05/business/05bankruptcy.html

Americans filed for bankruptcy in growing numbers in February, buckling under the combined weight of rising energy prices, a weakening housing market and sky-high personal debts.

An average of 3,960 bankruptcy petitions were filed per day nationwide last month, up 18 percent from January and up 28 percent from a year earlier, according to Automated Access to Court Electronic Records, a bankruptcy data and management company.

That piece must be combined with the following:

Countrywide Is Sued Again by U.S. Overseer   http://www.nytimes.com/2008/03/05/business/05lend.html

The United States Trustee has filed a second lawsuit against the mortgage lender Countrywide Financial, accusing the company of abusing the bankruptcy process.

In a complaint filed Saturday with the Federal Bankruptcy Court in Miami, the United States Trustee for the Southwest region, Donald Walton, accused Countrywide Home Loans, a unit of the mortgage lender, of wrongly asserting claims related to the property of two Miami borrowers, Jose and Fanny Sanchez, who reorganized their finances in bankruptcy.

The Miami suit comes on the heels of a separate lawsuit in the bankruptcy court in Atlanta also accusing Countrywide of abusing the bankruptcy process.

That new bankruptcy law turned out to be quite a clever stroke of social engineering in ways never envisioned by its drafters . . .

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Sources:
Filings for Bankruptcy Up 18% in February
JENNY ANDERSON
NYT, March 5, 2008
http://www.nytimes.com/2008/03/05/business/05bankruptcy.html

Countrywide Is Sued Again by U.S. Overseer 
REUTERS, March 5, 2008
http://www.nytimes.com/2008/03/05/business/05lend.html

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Video: Floyd Norris on Foreclosures vs Homes Sold

As we noted over the weekend (Where Foreclosures > # of Homes Sold), Floyd Norris Off the Charts column covered the fascinating question of where  in the country Foreclosures are actually exceeding Home Sales    

Here is the accompanying video :

click for video
Norris_on_foreclosures

 

Source:
A Dysfunctional Credit Market
Floyd Norris
NYT, March 3, 2008,  2:29 pm
http://norris.blogs.nytimes.com/2008/03/03/a-dysfunctional-credit-market/

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