I pay my home mortgage to American Home Mortgage and I just saw online today that they are filing for bankruptcy.
2007-08-03 08:11:33 · 12 answers · asked by pinchebarron 1 in Business & Finance ➔ Renting & Real Estate
it means nothing to your obligation to pay. keep paying on time and in full.
the loan will belong to someone after all the dust settles and they'll still want all the money promised.
there may be paperwork fun for AHM, its trustee in bankruptcy, etc. .. but that isn't your worry.
***
Btw, most of the mortgages outfits like this service are actually sold to someone else ... you simply aren't told of that because you do not need to know -- the servicing outfit handles it.
it may be that a new servicing outfit will be chosen somewhere down the road. if this happens, you'll be told in writing in plenty of time to change the name and address you send your payments to ...
if/when that happens, I recommend continuing to put AHM's name on the check for a few months but to use the new address. If it really has been transfered to the new outfit, they'll have authority to use AHM's name for a bit. If it is a scam on 'official' letterhead, the scammer will have to lie to his bank to get the money and then you'll be able to get it back afterward.
Can't be too careful these days, i'm afraid.
:(
2007-08-03 08:21:08 · answer #1 · answered by Spock (rhp) 7 · 0⤊ 0⤋
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RE What does it mean when the company that you pay your home mortgage files for bankruptcy?
I pay my home mortgage to American Home Mortgage and I just saw online today that they are filing for bankruptcy.
2014-10-02 12:44:18 · answer #2 · answered by Anonymous · 0⤊ 0⤋
yes many mortgage companies are currently opting for bankruptcy because the federal government is investigating these weird loans (like ARMs) that have sent many americans into foreclosure...thus putting a strain on the economy.
your loan will be sold, and you will eventually get a letter from the new mortgage company as to where to make your payments.
in the meantime contact your current mortgage company and ask about future payments, see if they have any advice. if you do not trust them - call a realtor.
good luck :)
2007-08-03 08:16:37 · answer #3 · answered by Blue October 6 · 0⤊ 0⤋
for you, nothing. Keep paying your mortgage. Your loan is an asset of AHM & can be sold to someone else.
what? did you think your mortgage would simply disappear because AHM filed BK?
2007-08-03 08:20:39 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Let me just say to you; do not stop making your payments. If the lender and payment address change, they will notify you in writing. Please do not think you can skip payments, with the industry in such chaos today, lenders are foreclosing after the second payment is missed. Keep good records, you might even consider sending payments registered mail with return receipt. I know that is a hassle, but better documented than not.
2007-08-03 08:16:59 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Yep, they'll be selling your loan to another company...PAIN IN THE BUTT. You "should" get a letter from them telling you who you will now be paying your mortgage to.
2007-08-03 08:20:43 · answer #6 · answered by icedcoffeeaddict 2 · 0⤊ 0⤋
Other lenders usually buy morgtages that are current and regularly paid.
You will be advised. If a payment is due before 30 days from now, call. if you can reach anyone.
2007-08-03 08:22:03 · answer #7 · answered by ed 7 · 0⤊ 0⤋
Nothing will change. You will make your payments as normal. If the loan gets sold you'll make payments to another company, thats all.
2007-08-03 08:18:12 · answer #8 · answered by Anonymous · 1⤊ 0⤋
It doesn't mean they are going out of business and they could always sell your mortgage to another bank
2007-08-03 08:14:31 · answer #9 · answered by Anonymous · 1⤊ 1⤋
Another company will buy out their loans and you will pay them.
Or no one buys it out and you get a free house.
This is not my area of expertise so i could be wrong.
2007-08-03 08:15:10 · answer #10 · answered by Anonymous · 0⤊ 2⤋