Traditional mortgages affected by lender's collapse?

Question

If a person has an old fashioned fixed rate, 30 year mortgage but just happens to have it through one of the big lenders that have recently collapsed or have had problems, will that affect the borrower at all?

Answer 1

most banks sell the morgage.  Thus a "servis" kumpanee take yer munee & spozed tu keep trak av yer akkount.

Problem is, morgages get sold so many times, the korps

sumtimes luze paperwerk.  Yer servis kumpany kan chaenj many times in 1 yeer.  Then suddenly, yu kant find out hu tu send the munee tu.

Or yu send in munee for 6 months & then get a letter from a plaes yu never herd av wanting tu no wi yu hav not sent munee the last 6 months.  That is a problem.

Answer 2

Your monthly payment is an asset, and passed on from one entity to another like any other asset.

Answer 3

No, you still owe the money to the bank (new bank).  It doesn't matter what type of mortgage you have, you still owe the money.  You may just be making the payment to another company.

Answer 4

no as the terms of the note do not change --another servicing company will get the note and you will pay them thats all

Part of RESPA

I am a mortgage banker in TN & KY