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shonuff5
268 Posts |
 Posted - 08/22/2007 : 3:29:24 PM
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1. What happens to a borrower's mortgage when the bank financing him goes bankrupt? Does the borrower get a free house, or does the gov. take the house, or what?
2. Is there a directory that has the phone numbers of all the lenders in it?
Thank you in advance. |
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coopercash
2874 Posts |
Posted - 08/23/2007 : 06:02:25 AM
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Leonard, "No free lunch, and NO free house!"
As you know, most Lenders sell off their paper within 30 - 120 days of funding as evidenced by the disclosures provided to borrowers prior to Closing.
In the event of a BK the assets of the lender including Note based receivables are ultimately acquired by other parties and Notes are purchased by another investor who may service the receivables or appoint a servicing agent.
Either way, the borrower STILL pays their mortgage to SOMEONE. Any borrower who becomes aware that their mortgagee is SOL would be well advised to contact the servicing agent (if any) so as to avoid being caught up in a "late pay/no pay" scenario and IF their now out-of-business lender was also receiving their mortgage payments then they should immediately make contact with a competent RE attorney.
In those cases the borrower might be well advised to place their monthly mortagge payments into a separate savings account opened for that purpose. If those monthly payments include escrows for taxes and insurance they need to make certain that when those annual property tax and home owners insurance premiums come due that they have the money to pay them.
On that point... maybe their Lender folded with nine or more months of escrowed inatalments paid to the lender. What then? Another reason for having a good attorney who can file a creditor claim for that "loss" at the appropriate time.
LENDER DIRECTORY? "Scotsman Residential Lender Guide". I suspect that it's customary 180 pages will by now be greatly reduced!! Or, go online to: www.scotsmanguide.com |
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VVance
6509 Posts |
Posted - 08/23/2007 : 06:20:21 AM
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| Agreed...for a list of lenders...Lane Guide...Laneguide.com |
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nickraine78
341 Posts |
Posted - 08/23/2007 : 06:23:20 AM
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| Nice answer coop! |
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shonuff5
268 Posts |
Posted - 08/23/2007 : 08:10:45 AM
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| Richard, thank you very much for clearing that up for me. Thank you also VV. |
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