Comments on: What Happens If Your Mortgage Lender Goes Bankrupt

By: Market Observer

Market Observer — Sun, 25 Oct 2009 07:48:36 +0000

You were being asked to go through another loan process because the buyer of your mortgage could not locate the title to your home (because it was packaged over and over in CDOs), therefore they have no legal standing to collect a mortgage payment. I hope you did not refinance.

By: Mercades willis

Mercades willis — Tue, 28 Oct 2008 15:34:11 +0000

I just wonder why banks giive out money to people iif they know they can’t pay it back.

They shouldnt give out loans to anybody

By: Amy

Amy — Thu, 19 Apr 2007 18:47:32 +0000

People’s Choice has just filed Chapter 11 and wants to auction off their existing mortgages, one of which is mine!

Why can’t I bid on my own mortgage?

I know I can’t so, when it gets sold to another lender, can I maybe renegotiate the terms of the loan? It is currently an ARM and we were in the process of looking for another lender anyway.

We would love to get a call from our broker telling us we get to re-fi for free!

By: Joy Beth

Joy Beth — Thu, 12 Apr 2007 21:16:04 +0000

My mortgage broker called me and told me I’d be doing another loan process. It all seems rather strange, it would be logical that New Century would sell my loan but for me to have to refinance again just seems a little off. They said I won’t have to pay any re-finance fees, just my usual mortgage and then I’ll have a new loan. It just sounds rather strange to me…….

By: Miller

Miller — Thu, 05 Apr 2007 17:00:34 +0000

I was wondering this the other day too.

I guess I was hoping that if your lender went bankrupt, you’d just own the house out right. But like wanzman said… fat chance!

So your mortgage is just sold off like any other commodity the bankrupt company owns? I guess that does make sense…

Do mortgages ever make their way into bonds? I’m not sure exactly how those all connect…

By: Maria

Maria — Wed, 04 Apr 2007 06:52:57 +0000

Hey there! I just read about you in a New York Times article. It was written back in 2005 so I was curious about how you and the other bloggers are doing now. Unsurprisingly, both you and Neville seem to have doubled your net worth during that time. I’ve got similar goals and have been trying to blog about it, but simply haven’t had the time. Keep up the good work! – Maria

By: wanzman

wanzman — Wed, 04 Apr 2007 01:13:31 +0000

You are correct. Since the mortgages are mainly the only asset that the lender has, they will be the very first thing to be sold when the financial institution enters bankruptcy. It would be just like getting a mortgage from a large bank. One of these days you will get a letter in the mail telling you that your loan has been sold and here is the new address that you should send your payment to.

As far as your loan getting lost in the shuffle and you getting your house basically free our of the deal…..not bloody likely. ha