Panic! Burn down your house! Ha ha, just kidding. Actually, you shouldn’t let your mortgage lender’s death pangs interfere with your payments, says Gerri Willis of CNNMoney, because your loan will just be sold to another lender. However, make sure you review the details of your mortgage agreement; the terms should remain the same no matter who buys your loan, and you have a 60 day grace period to get your payments to your new mortgage lender.
If you need mortgage satisfaction documents from a loan you’ve paid in full but don’t know who to contact now that the original lender is out of business, contact your State Attorney General’s office.
If you’ve been pre-approved for a home loan when the lender goes bankrupt, you should call the lender directly and ask point blank if they will be able to make your loan, says Dana Dratch at the Chicago Sun-Times. If they say they can’t, ask whether they can make arrangements to pass your loan application over to another lender.
Top Tips: If your mortgage lender goes under [CNNMoney]