All this talk about banks failing. What are the repercussions if your loan is with one of them?

Question

I read Yahoo's update about the seven banks in the danger zone. How is a person's mortgage affected if they are with one of these banks? Just curious.

Answer 1

If your bank fails, another bank will purchase the failed bank's assets and liabilities, including your loan.

You still gotta pay.

Answer 2

A bank that is failing will never loose money.  That bank will simply get helped by the goverment in some ways, or that bank will merge or be bought out by a larger bank.  You will still have to pay your mortgage, but you check might be written to another bank.  But yeah, the economy sucks right now.