If my bank goes bankrupt who will service my loan. Yes, my mortgage is with the bank not a3rd party.?

Deal Score0

What happens to loans when the bank closes or goes out of business. For instance I had over 5000 in credit that I owed COMP-USA. When they closed that was written off.

i have a ajustable rate that i was promised i could refi within 2 years,now my mortgage company will not service any loans in ct. i am behind on alot of bills, my income is less than last year,i work on commission basis.should i start paying what i can afford on my mortgage? i have three children and i am a divorced parent doing the best i can. my credit is not that great

  1. Reply
    February 24, 2011 at 5:15 pm

    Pay to the address you have agreed to until further notice. When a bank goes bankrupt, there is still business that has to be attended to, and there are people to do it.

  2. Reply
    February 24, 2011 at 5:54 pm

    The Federal Deposit Insurance Corporation will seize your bank, and then sell its portfolio, in whole, or in pieces, to solvent third parties.

    Watch your mail carefully. You will get mail from whoever buys your debt.

    The conditions of your loan won’t change, but details of how you pay may.

    At CreditCards.com, just yesterday morning we published a story about how credit card debt is distributed after a bank failure. Substitute the word “mortgage” for “credit card” and you’ll get the picture. It’s at: http://www.creditcards.com/credit-card-news/credit-card-debt-bank-fails-1282.php?a_aid=1079&a_bid=bcb7f7a1

  3. Reply
    Richard Jesus T. Savellano
    February 24, 2011 at 6:29 pm

    Federal Deposit Insurance and Central Bank will designate collection office as a part of receivership program to help liquidate assets, collect payments and pay depositors. If you still have outstanding loan balance to date, you should pay to the designated collection agent otherwise, it will incur penalties and surcharges. On the issue of accounts written off, it would not be easy to write off accounts. Banks needed to defend why an accounts must be write off. It may be an aging accounts of a bankrupt individual with no source of income and properties, it may be for a reason that borrower dies while his account still active… ect… Sometimes, these accounts were submitted to the courts for a decision on matters of Tax Credits… Remember, non-payment of such will affect your ratings in the future….

  4. Reply
    P J
    February 24, 2011 at 7:26 pm

    You have little choice, start looking for a buyer you have stated you can not pay the mortgage and if your credit is lousy then you will not be able to refi either.

    Being behind on bills only lowers your score even more.

    Face reality sell the home, that is even hard to do these days because I bet it is not what you owe on it, and start looking for place to stay. Renting will be hard with an awful credit score.

    If you do not pay full payments or have an agreement for lower payments then they will start foreclosure proceeding in app 3 months time.

  5. Reply
    February 24, 2011 at 7:38 pm

    If what you can afford is NOT the home you’re in, you need to consider other options. If you can afford the mortgage payment that WAS, you may be able to negotiate with the lender to keep the rate at what is was when you initially obtained the mortgage. If you were late on the mortgage in the past 2 years do not expect the lender to grant you a pass.

    You are NOT alone in your situation. Many Americans are facing the exact same thing you are right now. First try to work with your current lender. The next step call the mortgage foreclosure hotline (that is what will happen if you can not pay your mortgage payment in FULL each month). Consider selling, consider BK 13 for primary residence protection. Keep in mind a trustee for a BK will require you to remain current on your payments to the trustee or you lose the protecting the BK provides.

    Hope this helps, and Good Luck

  6. Reply
    Marc B
    February 24, 2011 at 7:58 pm

    Try refinancing through a different lender. Your best option is check around with several different lenders and find one who will refinance your home at a fairly low rate and make sure you get it a fixed rate. I am not sure why anyone would want an adjustable rate mortgage. You can count on the rate going up. They may tell you they can guarentee it will go up at least 1% but people, use your head. The rate will more than likely go up more than the 1%.

  7. Reply
    February 24, 2011 at 8:47 pm

    Your lender might ask you for a short sale but you might ask them if they can broker the your loan to another company. The only thing is that the other company can change your payment due to their guidelines and you may end up having to sell anyway. Go back and work out something with your lender. Also, look into finding a hourly job as well as your commission which will help with bills and your mortgage payment.

    Commission jobs are great if you can afford the luxury of not havingmoney when you need it,but an hourly job, as little as it pays sometimes is mor of a comfort because you know you always have a paycheck coming, unless you lose your job!

  8. Reply
    February 24, 2011 at 9:31 pm

    I’m guessing by now you’re realizing you should have NEVER taken the adjustable rate loan. Bad decision every time.
    You don’t refinance with the same company, you should have found a broker to help you before the rate became adjustable.
    Buying a house is great unless you don’t have any money, then it’s the worst decision you could ever make.
    Seriously – WHO CARES that you don’t want to move out of your house. Sometimes when you buy things that you can’t afford, you HAVE to sell them. If you don’t they’ll foreclose on your house and you’ll have terrible credit for the next 7 to 10 years. You have children to take care of so you need to think about what’s best for them. Find a small apartment that you can AFFORD and sell your house ASAP.
    You’ve made some bad decisions, but you have an opportunity to fix things. Do the right thing, get out from under your hosue right away!

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