It has been all over the news and in the papers that Countrywide Financial, the US's #1 mortgage lender is close to bankruptcy. On Thursday they were forced to dip into a $11.5 billion line of expensive credit to maintain liquidy, they are having major stock depreciation problems and the company chairman has recently made $13 million by selling his Countrywide stock.
Does this alarm you? It should.
Countrywide's decision to severely limit the types of home loans it makes could be a sign that many home buyers will have a much more difficult time getting financing, which can only further batter the already struggling real estate market as well as the U.S. economy as a whole. People are being denied for mortgages, with good credit and with money to put down.
Now is the time for you to really pay attention to your accounts receivables and you should take this time to re-evaluate your credit policy, and the credit limits of your customers. The mortgage industry is imploding and this will affect your business and the money you make.
Be VERY careful when evaluating new customers for credit lines and keep a close eye on anyone with a charge account and who owes you money. If you ever wanted to be more succesful and have a thriving business, you should put a credit policy in place NOW - before it is to late.
thanks for the great information.
Posted by: Chris Howard | August 28, 2007 8:50 AM | Permalink to Comment