If your bank fails and you have a mortgage with them, are you responsable for the mortgage?

Question

I don't mean the banks that have been bought up by larger banks, and I don't care about the Federal Insurance up to $100,000.00 (in America). Thanks

Answer 1

Yes.  In a case such as this, the loans are bought by other banks or investors, so you now owe the money to them instead of the original bank.

Answer 2

YES - You still have to pay back the loan!

What will happen is normally another bank will buy the mortage contract, and you will owe them the money.

If you don't pay them (The 2nd Bank), they will foreclose and own your home!  

Answer 3

Absolutely.  You remain liable for the mortgage.