There has been a lot of speculation that Countrywide could go bankrupt amid the mortgage crisis and it has a lot of consumers wondering how it may affect them. The first thing that consumers' will notice is a much more difficult loan application process that involves much more strict lending guidelines. New government regulations are making it very difficult for subprime borrowers who do not have a huge income to justify a home mortgage payment. Home sales will also fall further as mortgage financing becomes even more rare. Fewer mortgages means fewer buyers, meaning more homes will stay on the market and prices will fall with increased supply. Combined, this only means more hurt for a company has exhausted many of its extraordinary financing options - maybe it will happen.

From FoxBusiness:
Countrywide Financial, the nation's largest mortgage lender, is on a collision course with bankruptcy, with potentially severe impacts on the ability of U.S. consumers to refinance their homes or get new mortgages, according to Weiss Research analysts Mike Larson.