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Mortgage Lenders Who Go Bankrupt

Posted on March 02 By MLP Lending Guide

It may seem like private lending institutions like banks never make financial mistakes. But the sad fact is that these institutions are run by individuals, and occasionally a mortgage lender or bank will run into troubles and might even go bankrupt. If you have an outstanding mortgage and the lender goes bankrupt, what happens to your mortgage? Unfortunately, your obligation to make payments will not disappear. When a company goes bankrupt, their assets are transferred somewhere else, and like many material assets, an outstanding mortgage is also worth something.

Odds are, your outstanding mortgage will be transferred to another company or private lender, and after the bankruptcy your payments will go to the new lender. Keep in mind that your original lender is required by law to inform you of this, and they must provide you with the name and information of your new lender. Be wary of anyone claiming to be your lender and demanding money, as that too could be a scam. Always check with your mortgage lender before sending payments somewhere new.

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18 Responses to "Mortgage Lenders Who Go Bankrupt"
  1. Krystina Cribb 26, Jun, 2010

    Has anyone heard anything on the details of the new financial reform bill and how it is going to affect mortgage brokers?

      Reply»  
  2. Låna Pengar 21, Jun, 2010

    Find out exactly how much money you'll be borrowing and how long you want to spend paying it off. Paying off loans quickly is more advantageous to you since the longer your loans have outstanding balances, the more you'll pay in interest in the long run.

      Reply»  
  3. Jacelyn S. Pugh 14, Apr, 2010

    Been reading for a few days now. It was very good and insightful information. BTW, I like your site design as well. I enjoyed reading it and hopefully you will write more soon. Do you have a newsletter? How do I subscribe to the blog itself?

      Reply»  
  4. Sharla Jacome 30, Mar, 2010

    With time, I have discovered that to speed up the loan application process, I have to prepare the profile

      Reply»  
  5. Mortgage Assistance Group 04, Feb, 2010

    You should really look into the mortgage assistance group. We found the last year and they have really helped us a lot.

      Reply»  
  6. Free Checking 26, Dec, 2009

    Illinois' Bright Start college savings funds lost nearly twice as much as state officials have previously announced -- about $150 million -- the state treasurer's office confirmed today as it announced a settlement with the fund manager that will recover about 50 cents on the dollar for families who lost money.

      Reply»  
  7. Reginald Avent,Realtor : Money Matters: More Lenders Go Bankrupt, More Are Going Down! 08, Aug, 2007

    [...] Mortgage Lenders Who Go Bankruptadmin-->It may seem like private lending institutions like banks never make financial mistakes.  But the sad fact is that these institutions are run by individuals, and occasionally a mortgage lender or bank will run into troubles and might even go bankrupt.  If you have an outstanding mortgage and the lender goes bankrupt, what happens to your mortgage?  Unfortunately, your obligation to make payments will not disappear.  When a company goes bankrupt, their assets are transferred somewhere else, and like many material assets, an outstanding mortgage is also worth something.Odds are, your outstanding mortgage will be transferred to another company or private lender, and after the bankruptcy your payments will go to the new lender.  Keep in mind that your original lender is required by law to inform you of this, and they must provide you with the name and information of your new lender.  Be wary of anyone claiming to be your lender and demanding money, as that too could be a scam.  Always check with your mortgage lender before sending payments somewhere new. HomeBanc announces halt in issuing loans as Impac retracts offer of financing program for people with credit issuesBy Dan Seymour [...]

      Reply»  
  8. Trace Richardson 23, Mar, 2007

    Interesting times, especially when players ike New Century go down..... hopefully impact on A-paper stated programs will not be too extreme......

      Reply»  

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