What happens when your mortgage when your mortgagee files for bankruptcy.?
by Mortgage Rates on Wednesday, September 15th, 2010 | 4 Comments
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As far as you are concerned nothing happens. You just keep making payments to the same company or whoever bought the loan after the bankruptcy. The new company can not change the terms of the loan beyond of what is written in the Note. You should have the Note in your closing package, it’s a three page document that has all the terms of the loan outlined, and no one can change those terms.
And, you should be so lucky, but there is no chance that you will get your house free and clear after your mortgage holder goes bankrupt. Your loan is the bank’s asset that gets sold to cover bank’s obligations. Sorry.
The answer that Alexander, the loan officer of 10 yrs, gave you is absolutely correct. No home free and clear now or ever. This type of transaction is not new. It does happen and we still pay the same amount and for the same number of yrs to get that mortgage paid off.
It sounds good though!!
You’ll get some nice letters about who to make the check payable to, or a new direct draft form if you go that way. The new company will do a decent job, because they see it as new business –
while it is happening, just operate business as usual – this happened to me twice in the late 80s in NJ. I think the second time, the govt created a not-for-profit company to manage the asset base.
Hi,
I used “Credit Solution” to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It’s legitimate.I came across this company on NBC News Special Edition.Check it out here:
http://nanoref.com/linksynerg/h6PZOg