My Lender Went Bankrupt! What do I do?!
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Home mortgage foreclosures are making headlines almost daily. Not only are sub-prime homeowners facing foreclosure, but prime borrowers are falling behind on their mortgage payments and are also at risk. What do you do if your mortgage lender goes bankrupt?
If you currently have a mortgage loan with a lender who goes bankrupt, continue making your house payments. Don't add to your own foreclosure risk by not making house payments when due. Another lender will purchase your mortgage and the same terms and conditions will apply.
Pick your new home loan lender carefully. As mortgage foreclosures increase, so will the number of lenders in trouble. Make sure the lender you work with is a solid one, especially if you are in a purchase agreement where deposit money could be in jeopardy. If you are using brokers, ensure they only shop with reputable lenders. While the sub-prime market has been the most damaged by the rash of home foreclosures, other prime lenders are seeing mortgage foreclosures and defaults, too.
In a time of high mortgage foreclosures, the market and its players are changing quickly. Protect yourself by choosing wisely.