Quality Home Loans Files for Bankruptcy

August 22, 2007 No Comments »

Quality Homes Loans filed for Chapter 11 protection Tuesday at the U.S. Bankruptcy Court in the San Fernando Valley, a suburban region of Los Angeles County.

Three of the company’s affiliates, QHL Holdings Fund Ten LLC, California TD Investments LLC and Golden State TD Investments LLC also filed Chapter 11 protection Tuesday.

The mortgage lender said it had between 1,000 and 5,000 creditors, with California TD listed as its largest creditor with an $11.1 million claim.

The company listed assets in the range of $1-$100 million, and liabilities of more than $100 million.

Quite a range for the potential assets isn’t it?

Quality Homes Loans, which is said to be the nation’s largest hard-money lender as well as a major subprime lender, does business under the names Clear Credit Capital, Last Chance Home Loans, Last Option Lending, and QHL Investments.

Their website says the company offers hard money loans, loans for borrowers in foreclosure or in bankruptcy, as well as loans for borrowers with no minimum credit score.

That’s quite a risky product offering, even if it were several years ago, so the fate of the company can’t be good.

It is unclear whether loans are being funded or originated at this time, as the company has not released an official announcement regarding the matter.

Mortgage brokers have been discussing the fate of the company in a popular online forum, noting that loans haven’t funded and that the company may be in the process of re-writing its warehouse accommodations.

More to come as it breaks.

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