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Mortgage Company Folds: Can I Lose My House?

Can I lose my house if my mortgage company goes out of business?


That won't happen. Your loan is an asset to the company that is going out of business. It is a thing of value and will not be discarded.

Your loan will be "sold" to another investor who will notify you where to make the payments. They are required to do this by law and it happens commonly even when companies don't go out of business. In the meantime, assume that someone is receiving your payments for the old company and continue to mail them just as you have been doing.

The only tricky thing is to ensure that if the lender pays your taxes, insurance or other expenses, that this continues. It is a safe assumption that a qualified loan servicer will be handling your account, but it is always safer to trust, but verify.

Published on BankingQuestions.com 8/10/07