my mortage co is on the verge of filing backruptcy. how does this affect my mortgage?
2007-03-12 09:39:33 · 7 answers · asked by brandon316b 1 in Business & Finance ➔ Renting & Real Estate
They will sell your mortgage to another company. Your terms will stay exactly the same, the only difference is you will make your payment to a different name at a different address
2007-03-12 09:44:17 · answer #1 · answered by blewmoon2 4 · 1⤊ 0⤋
The mortgage and note terms remain intact and recorded; it's just that the company/entity that services and owns your paper will change. Refinancing to avoid a certain servicing company is a rediculous idea, and the loan officer should know that refinancing needs to have a tangible benefit to the borrower. If you have an ARM that is close to adjusting, or your credit score has improved, then it would be time to look into refinancing.
2007-03-12 19:09:33 · answer #2 · answered by mgbendel 1 · 0⤊ 0⤋
Assuming your existing Mortgage Company ceases to do business your loan will sold to and serviced by another company. I suspect you hoped as I would the mortgage would just go away but, alas, this is not true. Don't worry about it though, you will be notified where to make your payment should the company BK and close.
2007-03-12 17:03:46 · answer #3 · answered by Charlie 2 · 1⤊ 0⤋
if you think they are on the verge of filing bankruptucy they will probably sell your mortgage to another company. it may or may not affect it. what i would say do is to refinance your home with another company just in case something does happen and your rates goes up. i'm a loan officer. if you have and question or would like to re-fi shot me an email
2007-03-12 16:46:15 · answer #4 · answered by cmruffin1 2 · 0⤊ 1⤋
Your current mortgage co. will "sell" your loan to a different comanpany.
It won't affect your loan in any way, just where you send payments in, and what company it is serviced by.
2007-03-12 16:44:16 · answer #5 · answered by Anonymous · 1⤊ 0⤋
They'll sell it to someone else. The terms of the loan cannot change, although the buyer may be better/worse in customer service that your current lender.
In dire situations, the government may take over the loan. Very doubtful, though.
2007-03-12 16:47:49 · answer #6 · answered by Jay 7 · 0⤊ 0⤋
It does not affect it all, your mortgage will be transferred to another company and they will send you a letter letting you know about this. Don't worry.
2007-03-12 16:43:56 · answer #7 · answered by Akbar B 6 · 3⤊ 0⤋