<[p> Predatory lenders are lenders from hell. If you make all the payments, they can still refuse to credit your escrow account and move to foreclose on you.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Subprime has been in complete turmoil for the last few weeks, and unfortunately, Fannie/Freddie are overreacting IMHO by cutting the numbers of second mortgages they will accept to practically nil. Citi taking over Argent is just an example of the consolidation in the industry. All of this is hurting first time homebuyers.
The better 100% financing programs for first-time homebuyers are vanishing.
I would expect to see more portfolio lenders respond to this by making their own loans outside Fannie/Freddie guidelines if this trend continues for more than a year or two, because of demand.