What happens to our mortgage payment if our mortgage company fails?
Your mortgage loan is a valuable asset to the mortgage company, and it will certainly be transferred to a new lender or investor. If that happens, you'll get a notice of the transfer, along with instructions on where to make your payments to ensure you get proper credit.
Watch carefully for such a notice if you do learn of your current lender's failure. It may not be clearly marked to indicate that it's important, and you may be tempted to treat it as just another piece of junk mail. If you receive such a notice, read it and follow the instructions on making payments carefully. Look for information that will let you track your payments, such as a website that will allow you to check your account regularly. Compare your records of payments made before the transfer with those after the transfer to ensure that your balance was transferred correctly, and contact the new lender at once if you detect a problem. Mortgage sales and servicing transfers are routine transactions, and if your loan is sold, things should go pretty smoothly as long as you read and follow the notices you get about the change of lenders.
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