Countrywide Mortgage... TIMBER!!! Last week Countrywide, the nation's largest lender, used up it's credit line to fund INTERNAL OPERATIONS!!! That's because other credit markets refused to lend them money and their assets aren't generating enough PROFIT.

Countrywide was the leader in alternative financing. And in an atmosphere where 1 in 5 of the conventional loans funded in the first part of 2006 are in default; it's only worse for the alternative financiers. Unfortunately, they've funded too many bad deals without getting enough return on investment for the risks they took.

What they're doing right now is trying to survive... and I don't think they will. I don't believe that the Feds lowering the discount rate will help them. Countrywide looks like a prime candidate for BK with big players buying the portfolios at wholesale prices. And they're not the only lender in trouble!!!

Now where's the opportunity? Well in an effort to survive, I believe that Countrywide will become much more amenable to short sales, work outs & maybe buying these bad loans individually & in portfolios.

Be VERY CAREFUL of portfolios. They may contain nightmares. That's why I've shied away from them. However if you can purchase them at HUGE discounts; go for it!

I wish you... Invest Intelligently!