Like if my mortgage was with one of the lenders that is closing down does my mortgage get sold to another lender or do I cease to have one.
Any ideas.h
2007-08-03 06:26:52 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
all the loans get sold off. they dont just close up shop, billions down and go home, they sell your loan to the highest bidding financial institution.
basicly, your loan got sold to chase or wells fargo.
2007-08-03 06:31:45 · answer #1 · answered by ktlove 4 · 0⤊ 0⤋
Other lenders will buy that loan, if it's a profitable one.
Any that are not purchased by someone goes into the lenders bankruptcy. With that, a bankruptcy court can demand payment from the borrower in order to satisfy creditors of the lender.
In US, when a bank goes under, the government assumes all the loans that are not assumed by another bank. The gov. then receives the payments on those loans, until paid in full.
They use lots of threats to the borrower to refinance the loan with another lender, but they cannot force one to do so, UNLESS, the loan has a renewal date. Then the borrower must acquire a new loan, else it may go into default. Then the gov. can repossess and auction the property.
2007-08-03 13:43:42 · answer #2 · answered by ed 7 · 1⤊ 0⤋
The loans are sold as assets to either investors or other banks. If your lender was acquired, and didn't just decide to close its doors, your loan would generally be taken over by the acquiring bank/firm. Sorry, you don't get out of the mortgage :) Keep an eye out in your mail, you should be receiving a letter indicating where to make your payments too.
2007-08-03 14:13:14 · answer #3 · answered by Ari 3 · 0⤊ 0⤋
No such luck! Your loan remains in full force and effect for your purposes. For the banks purposes, they usually sell the loans to another company or (in some cases, possibly the government).
I wish you'd be free and clear, but if that's how it works I'd invest in a bunch of ready-to-die mortgages with broke lenders.
This is a timely question, though, as more and more lenders are going broke on all those STUPID $0 down, interest-only, adjustable rate loan programs they've been selling. Honestly, they deserve to go out of business. And the people that got those loans, though some hard luck stories exist, made bad decisions they couldn't live with and are simply paying the forclosure piper.
2007-08-03 14:03:13 · answer #4 · answered by Keep On Trucking 4 · 0⤊ 0⤋
they can be sold to another lender, under certain conditions the loan can be called in for full payment. Then you must find a lender willing to refinance the loan.
2007-08-03 13:35:29 · answer #5 · answered by Jan Luv 7 · 0⤊ 0⤋
Loans will get sold, you will pay someone else your mortgage payment from now on. This is just how it works, and you will be getting papers in the mail soon about this.
2007-08-03 13:37:24 · answer #6 · answered by ... 4 · 0⤊ 0⤋
It gets sold or taken over by another company.
2007-08-03 13:34:26 · answer #7 · answered by KathyS 7 · 0⤊ 0⤋
Haha if only life worked like that
2007-08-03 13:35:53 · answer #8 · answered by Francis H 2 · 0⤊ 0⤋