Failed mortgage lender HomeBanc Corp., which filed for Chapter 11 bankruptcy last week, is being threatened with foreclosure by JP Morgan Chase Bank, the lead lender on $68 million worth of operating loans.

Court papers filed Sunday in a Delaware bankruptcy court say JP Morgan Chase, as agent for the syndicate of banks that funded HomeBanc’s operations, is demanding assurances it won’t get stuck for the money.

JP Morgan Chase wants an emergency hearing Tuesday on its bid for guarantees that Atlanta-based HomeBanc will be able to cover its secured debt. The bank wants to be able to foreclose on its collateral if no assurances are forthcoming.

The number one rule when filing for Chapter 11, is to have your secured lenders on your side so they work with you during the process. HomeBanc seemed to have forgotten this important step in the process.

Usually, secured lenders don’t have to wait long to cash out their holdings in a bankrupt company. Most failing companies try to have deals for Chapter 11 loans and, often, asset sales in hand before they file bankruptcy petitions, to reassure top-ranking creditors.

HomeBanc filed its Chapter 11 petition in Delaware close to midnight Thursday, with little notice to the secured lenders it needs to have on its side, no financing and, so far, only a plan to close the last $2 million of a series of sales to Countrywide Financial Corp.

Troubled companies aren’t allowed to use the collateral securing their top loans to fund a controlled Chapter 11 shutdown unless the lenders agree to let them.

Oops. I still find it hilarious that all these companies are “shell shocked” by the whole subprime lending fiasco. You can’t tell me that they couldn’t see this coming for a long time.

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