hypothetically asking, if you buy a house with a 30 year mortgage from a bank, and the bank went out of business. no sell out, no merger, just incompetent people running the place. do you still have to pay the remainder of the mortgage or is the house yours to own for good?
2007-07-05 20:54:08 · 3 answers · asked by jamz 5 in Business & Finance ➔ Renting & Real Estate
Unfortunately, the now defunct banks loans are picked up by another bank that the borrower would now need to pay. This does happen from time to time, and most of the time the loans are sold prior to the bank going under, so there is no lapse in payments. The borrower would receive a new payment notice from the new bank before the next payment was due.
2007-07-06 04:09:37 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Wow! That sure would be nice huh! You would still have a mortgage against your house because the note would be sold to a different bank. I am in the mortgage industry and this has actually happened recently. Would be nice though! ;)
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2007-07-06 04:15:46 · answer #2 · answered by jhytenrvp 1 · 1⤊ 0⤋
YES your still get to pay off the loan. The bank had creditors and DEPOSITORS that is owed money. The F.D.I.C (Federal Deposit Insurance Corporation) will be by to continue collecting for said depositors.
2007-07-06 05:12:39 · answer #3 · answered by Willems_grandpa 3 · 1⤊ 0⤋