I've been reading about some mortgage companies filing for bankruptcy so what would happen to your house in that situation? Would you get to keep it? Do you automatically lose it? Who would get it in that instance?
2007-08-06 12:20:22 · 6 answers · asked by clytisciasha 3 in Business & Finance ➔ Renting & Real Estate
If the mortgage holder goes bankrupt you will make your payments as usual. Although they may be sent to the court. Eventually the court will sell off your mortgage to another company and you will pay them each month.
Your home stays your home as long as you can prove you have made your payments (keep your bank records to show your checks have been processed.)
2007-08-06 12:29:50 · answer #1 · answered by my_iq_135 5 · 0⤊ 0⤋
Nothing. The existing mortgages would be sold off to settle the BK estate of the firm. You would possibly have to send your mortgage payments to a different address but even that is not an absolute. It's entirely possible that you are making your payments to a mortgage servicing company and the new holder of the note may continue to use the same servicing company.
At any rate, your mortgage will remain in full force and effect as long as you keep making your payments according to the mortgage contract.
2007-08-06 13:00:12 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Your mortgage is a deal you made with the lender - that debt does not go away. The person or company who buys the assets of the bankruptcy will continue to collect on that deal until the deal matures. Your house is safe, you just have to continue making payments.
2007-08-06 12:44:34 · answer #3 · answered by butch 5 · 0⤊ 0⤋
The mortgage is usually sold to another bank or service provider and the home owner continues to make the scheduled payments. Mortgage lender bankruptcy does not nullify the loan contract.
2016-05-20 00:54:29 · answer #4 · answered by ? 3 · 0⤊ 0⤋
most typically your loan would be sold to another bank and this is something that is very common regardless if your mortgage company files bankruptcy or not if you have ever refinanced your home before and you have to sign all that paper work at closing one of those documents reserves the right to sell your loan at will.
2007-08-06 12:55:58 · answer #5 · answered by Anonymous · 0⤊ 0⤋
They would just sell your mortgage to another company that's all. Your house would stay yours, you'd just pay your bill to another company.
2007-08-06 12:26:04 · answer #6 · answered by Anonymous · 0⤊ 0⤋