What happen to your mortgage if the mortgage lender go into liquidation?
Answers:
usually your mortgage is sold
Typically another financial institution will buy the assetts (including receivables) from the bankrupt lender. Bankruptcy courts oversee the process.
for your nothing - u will get something contained by writing telling who your new mortgage company is -- pocket money will go into a fund that will be paid to the company that buy out the ruined mortage company!
The bankruptcy referee will decide who gets your mortgage payments.
Odds are they will flog your mortgage to another company. My guess is you continue making your payments, or put them in a special guard account, until contacted by the legal staff concerning the liquidation.
The lenders assets, including your loan, are sold to other lenders. You now owe the same amount underneath the same terms to another mortgage company. This is truly quite common even if the lender does NOT budge bankrupt. My mortgage was sold by the inventive lender before I signed the paperwork. In the 4 years since, it has already be sold to a 3rd company.
You will be notified by the courts of where to transport payments.
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