Should the US banks go belly up ,will I be able to hold onto my house being that I have a mortgage ?

Question

Obviously I am painting a pretty bleak picture regarding my opening question ~however...what rights does a mortgagee have should things get really dicey ?

Would I be able to offer 1/4 of what the balance showed by paying it off all at once ?

( The irony is that the banks have been making way too much regarding the interest on many a mortgage for many years.)

Answer 1

Banks sell mortgages to other banks. If your bank is in trouble, some other bank will buy your mortgage from them and you will owe the balance to the new owner. Your bank won't cut a deal with you directly.

Even if your bank goes under, their creditors will have the opportunity to sell your mortgage to recover what is owed to them.

Answer 2

no you will not own it, like you will loose all your money in the bank too :(

Answer 3

Interesting question.  I don't know, but you should work on getting out of debt.  Things are going to get worse, be prepared.