Home foreclosures rose 47 percent in March over what they were during the same time period in 2006. What is even more alarming is how many of these foreclosures are senior citizens being evicted. Senior citizens have become a major target for “predatory lenders.” Many seniors are in need of cash to [...]

On April 25, a New York bankruptcy judge approved a Delta Air Line plan to exit bankruptcy. The plan would bring to a close Delta’s 20 month bankruptcy.
Delta expects to emerge from bankruptcy protection on Monday. The reorganization was successful in reducing labor costs, restructuring its fleet and terminating a pilot pension [...]

WMC Mortgage announced that 771 workers, including 185 at its Addison based Texas division. This round of layoffs follows the termination of 460 employees last month.
WMC spokeswoman Brandie Young said that the layoffs are the result of the turmoil in the mortgage industry. Many subprime mortgage lenders are leaving the business.
WMC, headquartered in [...]

The National Association of Realtors said earlier this week that home sales suffered the largest drop in sales in 18 years. A spokesman for the group said that sales of existing homes fell 8.4% in March from February, the largest single month drop since 1989.
The group acknowledges that fallout from the subprime [...]

As you know buyers of companies frequently suggest that the target file a chapter 11 case so that the buyer can purchase “clean” assets. This process is not a foolproof method of purchase since the sale process in a bankruptcy includes open, public bidding. That is why there are often larger sized break [...]

The House Financial Services Committee met on Tuesday to discuss possible solutions for the subprime mortgage crisis. In attendance were Federal Deposit Insurance Corporation, Housing and Urban Development, Freddie Mac, Fannie Mae, real estate investors, lenders as well as consumer groups. Almost all in attendance agreed that the best possible solution would be [...]

Here is a link to an interesting article out of Australia which concerns the current thinking on money supply–both in the Au government and in the US. About one year ago, as you may know, the US government quit collecting data to allow it to report money supply in our economy (M3). [...]

The Court of Appeals for the Tenth Circuit recently ruled on the issue of whether the stay created under Bankruptcy Rule 4001(a)(3) suspends the automatic termination of the automatic stay when that termination becomes effective 30 days after the filing of a motion for a relief from stay. See Duran v. AmeriCredit Financial Services, [...]

In a recent article in Fortune online the various bidders for Chrysler are all analyzed. The author’s conclusion: no sale is the best alternative, but that is impossible given the positive reaction to Daimler’s recent consent to selling the American arm of the company.
Here are some quotes from the article:
“Getting the immense returns that [...]

The U.S. Trustee assigned to the bankruptcy of New Century Financial Corporation filed court papers that said the corporation shouldn’t be allowed to sell mortgages worth $50 million. New Century is the largest subprime lender currently in bankruptcy.
“New Century should be forced to eliminate or reduce a $1 million breakup fee and [...]