EXHIBIT 99.1

FOR IMMEDIATE RELEASE


Contact:


John Kalas
(516) 495-7037
American Home Mortgage


   WL Ross Approved By Bankruptcy Court As $500 Million Stalking Horse Bidder
                     For American Home's Servicing Business

September 26, 2007, Melville, NY - American Home Investment Corp. (OTC:AHMIQ)
("American Home") today announced that the U.S. Bankruptcy Court for the
District of Delaware approved an entity sponsored by WL Ross & Company LLC as
the stalking horse bidder for American Home's mortgage servicing platform and
mortgage servicing rights.

The purchase price payable under the stalking horse agreement is based on a
formula, tied primarily to the principal amount of unpaid loan balances under
servicing contracts and outstanding servicing advances as of the closing date.
American Home estimates, based on current account balances and certain other
assumptions, that the total purchase price would be approximately $500 million.

The motion was supported by the official committee of unsecured creditors and
the administrative agent for the pre-petition lending syndicate for American
Home's servicing operation. With bankruptcy court approval, American Home is now
soliciting competing proposals for the sale of its mortgage servicing business
by October 2, 2007, to be considered at an auction scheduled for October 5,
2007.

Located in Irving, Texas, the mortgage servicing business of American Home
employs over 400 professionals servicing a portfolio of more than 200,000 loans
and over $50 billion of unpaid principal balance. An objective of American Homes
through the sales process is to provide a seamless transition of mortgage
servicing to homeowners while its servicing operations are transferred to new
ownership.

Notwithstanding the value which may be realized in the proposed sale of the
mortgage servicing assets and mortgage servicing platform, as previously
disclosed, the Company does not believe that the sale of its assets in the
chapter 11 process will enable it to pay its creditors in full or that there
will be any funds remaining for distribution to its equity securityholders.

This news release contains "forward-looking statements" that are based upon
expectations, estimates, forecasts, projections and assumptions. Any statement
in this news release that is not a statement of historical fact, including, but
not limited to, projections of financial results, expected future financial
position, or business strategy, and any other statements of plans, expectations,
objectives, estimates and beliefs, is a forward-looking statement. Words such as
"look forward," "will," "anticipate," "may," "expect," "plan," "believe,"
"intend," "opportunity," "potential," and similar words, or the negatives of
those words, are intended to identify forward-looking statements. Such
forward-





looking statements involve known and unknown risks, uncertainties and other
factors that are difficult to predict, and are not guarantees of future
performance. As a result, actual future events may differ materially from any
future results, performance or achievements expressed in or implied by this news
release. Such forward-looking statements are inherently uncertain, and actual
results may differ from expectations. American Home does not assume any
responsibility, and expressly disclaims any responsibility, to issue updates to
any forward-looking statements discussed in this news release, whether as a
result of new information, future events or otherwise.