Zone Funding - Subprime/Alt-A Wholesale


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Note: Zone's site is back up and reports they are still offering the hard money, D-Zone product. Pending confirmation that the company is stable, this entry may be removed.

I don't know what the ultimate, official fate of this company will be, but as per their home page, they are ceasing acceptance of new loans:

Zone Funding has announced today that new loan submissions will not be accepted at this time due to market turbulence. Zone Funding will continue to process loans already submitted. If you have any questions regarding loans in process, please contact Vicky Hernandez at (805)244-9522 or Jamie Monostori at (805)244-9523. Zone Funding will be evaluating the current environment and will be making an announcement shortly.

The web site is otherwise totally shut down; other pages are inaccessible. Here is some info off the old "about" page, from the Google cache:

Zone Funding is a boutique lender offering a variety of Sub-Prime and Alt-A product with a focus on what the wholesale industry has largely ignored. Our forward product thinking, coupled with a unique approach to "bucking" industry standards has lead to the development of one of our most unique programs called the D-Zone.

The D-Zone is a loan designed to meet the needs of many individuals that are faced with today's high cost of living standards coupled with our poor economy. Many consumers struggle to get conventional financing due to poor credit history or spotty employment, yet they have lots of equity in their homes. Instead of facing the possibilities of losing their home due to not being able to get out of debt, we offer them an alternative. With more than 35% equity, we will finance this type of borrower with very few questions asked.

Seems like an environment where house values are falling could wipe out the equity of these "D-Zone" borrowers and largely nuke the program. Luckily, house values never fall!

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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.