acermill
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Any mortgage owned by Bear Stears (or similar) would transfer to whichever entity purchased Bear Stearns, in this case JP Morgan Chase. The notion that a mortgage would disappear because a lender went out of business isn't realistic. Some other entity ALWAYS purchases that outstanding 'paper' and collects on it, as if nothing happened. |
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Anton
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The stock holders will divide the assets of the bank when it goes bankrupt. The assets of the bank for whatever is left will be sold and divide equally among the stock holders of the bank. The more shares the stockholders got, the more shares the of the proceeds of the sale the stockholders will get. |
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great_and_mighty_adam_levine
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Your mortgage is an asset which can be sold.
Like all assets, it would be sold to pay off creditors. Then, the buyer would own your mortgage.
-->Adam |
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kelbean
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They sell your loan to another bank - would be nice if you own by default, two of my banks went down within 6 months - but that doesn't happen! |
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estielmo
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All assets are passed along to whoever buys them out. |
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zanodad
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Another bank will surely purchase "your" bank. They will own the loan. |
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TJ2day
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Most likely another bank would take over the failing bank, just as is happening with Bear Sterns. If too many banks do the same thing the values of the homes would be so low the foreign banks would likely dive in and take over for a while. Right now, at the moment, they aren't interested. Lets hope the market stabilizes soon. |
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nite_angelica
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Whatever bank buys your loan. |
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b.j
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government or buyer of bank |
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La Vie Boheme
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The loan is purchased by another bank |
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Shellie L
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Whih ever institution buys BS buys their loans as well |
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T-pot
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no.. if they "go out of business" they have already sold your mortgage to another bank. |
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Deborah Z
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Banks don't just go out of business, they are bought out by someone. That someone now owns your account. No default when it comes to something of this nature. |
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nestegg80
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You loan is an asset on the bank's book and it would be sold often times at a discount to another buyer.
http://www.1031reviews.com |
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Patrick
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The house (real property) and the loan are two different items.
You bought the house and the bank lent you the money to do it. You are the owner of the house and the bank has a lien against it as collateral for the money you borrowed from them.
no matter what happens, you own the home. If the bank goes under, the loan will be bought by another bank and they will assume the lien on the property. You will then make your payments to the new lender.
If you go under and stop making payments to the bank, they will call the loan fully due and exercise the lien, which will end in foreclosure. |
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