I have a mortgage and the company is in financial trouble like so many right now. What would happen to my mortgage if they when belly up? HHMM???? Anybody know the true answer?? Thanks Much,
Yes. Your loan will be sold to another company. Mortgages are frequently sold to other providers. I have one mortgage that has been sold twice now.
Do not worry they must have insurance by law, you will be fine and so will your mortgage. If not contact your local lawyers and see what happens.
It depends. If you've incorporated, your personal mortgage is safe. If not, and you're talking about a sole proprietorship or partnership, then in trying to get the money you owe, your house may be sold to pay it.
Mortgages are usually packaged and resold in large chunks to institutional investors. Sometimes you don't even know that it has happened since the originator will often have an arrangement to "service" (take payments, etc) the loan.
You may want to read the first post again. It is the mortgage company he is worried about. NOT his company.
Thanks for the info... My wife was pipe dreaming and hoped it would dissolve with the company but I said No Way. A debt is a debt.
Damn, that would be freakin' sweet if that could really happen! That would be like a dream come true for me.
Loans are assets to lending companies. People actually make a decent chunk of change when they can find privately held contacts on real estate and sell them to places like Washington Mutual. Supposedly a nice living can be made with this as well, but I doubt there are that many privately held notes out there to make a living at it.
Since the loan company has already paid for your house, your mortgage is nothing less than an asset to them, which they would never just forget about. If they liquidate, they'll sell it to some other company, who will probably be able to get a pretty good deal on it. You'll then be paying a different company, although from your end everything will usually look the same. They want you to repay the mortgage, so they're going to make it as easy as possible on you and not make you figure out who to make a check out to or what address you have to send it to.
You guys have been super but just think of all the awash debt if some loop in the system somewhere allowed us all too be forgiven because a company was to belly over and lose it all??? The economy and the Dow would never stand for it but the thought is a riot none-the-less...
lots of funds of various big institutions like goldman sach gone burst due to subprime mess......fellow members have given right views on this topic......you dont have to worry about your mortgage