Today news is circulating that right before Christmas, Foreclosure.com filed for bankruptcy. Their “dynamic team of savvy real estate visionaries and brilliant software developers” ended up with too much debt and not enough revenue, much like the people whose homes they advertise on their website. Somehow, they have overlooked putting news of their bankruptcy on the site. I don’t know how long you’ll be able to check out the actual documents, but here they are. I love that they actually had to list the $200 in petty cash and $600 in Paypal accounts.
Going forward, one concern is the effect this will have on their creditors. They owe close to $19 million to Fifth Third Bank, and another $4 million to Legacy Bank of Florida. Unfortunately for Legacy Bank of Florida, they already have $8.6 million in non-performing loans, which doesn’t seem to include money owed by Foreclosure.com.
What a shame they won’t be able to simply foreclose on Foreclosure.com.
In closing: if you haven’t read this piece on The Obama Disconnect, do!; on the intersection of banking reform and mortgage cramdown; good news for the American economy, manufacturing is picking up on demand for American made products (proof that we can make things profitably other than lattes); here’s what conservative economic policies do to for our economy (note that the Reagan Years weren’t as good as the 40s, 50s, 60s, or those bad old 70s); happy songs make happy teenagers?; Fighting Women; global warming; you didn’t actually need medical care, did you?; and health costs keep rising.