If the company that services my mortgage fails, do I still need to pay it back?

Question

If the company that services my mortgage fails, do I still need to pay it back?

Answer 1

Yes, per RESPA guidelines, (guidelines which govern lending practices/real estate practices) it will be sold to another company.  Sorry!

Answer 2

Of course you do!

Answer 3

Yes of course you do! The only thing that changes is the company that services your loan. So only the address where you send your check to is different and nothing else.

Answer 4

Of course you do.  Your mortgage will be sold off to another company, and you'll pay them your payments

Answer 5

yes as it will be sold to another provider it is a part of RESPA

Answer 6

Yes creditors will acquire that company. A mortgage company that goes under will be in debt to someone else. Probably a bank or several banks that will seek to collect payment from the company's customers. Another mortgage company may also buy it out and take on its customers.   You will still have to pay that debt to someone. It will not just go away magically.

Answer 7

Your loan will be assumed by another lender/servicer.  It remains intact.

Answer 8

Yes, because the underlying debt will be sold to another creditor.  The company that "services" the debt (collects the money, calls and harasses when you don't pay) may change, so you may be sending payments to a new address.

You will still lose your home to foreclosure if you fail to pay the mortgage, even if the company who wrote the note no longer exists, because the note DOES STILL EXIST.