Can a mortgagee"buy" their own loan from a bankrupt lender for less than is owed ?

Question

Our mortgage lender has filed for bankruptcy protection. We assume that our mortgage in the bankruptcy proceeding will be sold to another lender at a greatly reduced price. Example: We owe $200,000 on our mortgage with the bankrupt lender. Another lender might buy it for $100,000. Is it possible to "buy" our own loan, from our current lender, while they are in bankruptcy, at a greatly reduced price, just like another lender will eventually do ?? We feel that we need to ask this question if it is possible because if another lender can buy it at a greatly reduced price, why not us, the mortgagee ??
Thank you for all answers to this question

Answer 1

Loans are securitized by the millions in a portfolio full of loans exactly like yours. Unless you have the money to purchase the entire portfolio, you can't even put in an offer.

Answer 2

why would you assume at a reduced priced
you lender went out of business due to sub prime loans in their portfolios that were killing the profits margin on the good performing loans
if you loan is a good performing loan
the loan company may or may not get a discount
but you will eventually pay the full amount as per your original contract
as they new lender will want the premium dollars you loans represent
the others will be sold at auction to get what they can for them

Answer 3

Hi ,

It is possible that you can buy ur own mortgage at a
reduced price. Its called discounted bills. BUt you will have
to seek the approval of the liquidator and the creditors .

Rgds..........................

Answer 4

This is by far the worse idea I have seen in a very long time.

This is just like "Why don't we build our own car instead of buying a Toyota Corolla?" or "Why don't we buy a cow to get free milk every morning?" or "Why don't we plant a tree in our house to get free oranges?"

Answer 5

Short answer? No.

Answer 6

Do you have the cash to do this? If not I think you would be outbid :)