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Phyllis Said:

Mortgage Lender filing for bankruptcy?

We Answered:

It won't affect your mortgage payments. This is how it works. If the mortgage lender files bankrupcy everyone gets fired except for a hand full of people that can service the loans while the CEO is busy finding another company to take over the loans. Worst case scenario, someone buys you loan and you send your check to a different place every month.

Bryan Said:

Does anyone know of a mortgage lender that will buy out a bankruptcy and/or foreclosure?

We Answered:

Yes, you should be able to refinance this person with an active foreclosure with either Fremont, Option One, or World. However with a bankruptcy, your going to have more of a challenge. I do believe that World and OOMC will accept bankruptcies with in the 2 years, but you need to check on that. Contact me directly if you need assistance

Eddie Said:

can a mortgage lender seek deficiency if I filed for bankruptcy in NH?

We Answered:

No. If you did not reaffirm, your personal liability for the mortgage was discharged in bankruptcy. Any attempt to collect any deficiency would be a violation of the discharge order.

The mortgage company is free to foreclose on the property (which foreclosure will appear on your credit report as a post-bankruptcy foreclosure), but it cannot collect any deficiency from you.

It does not have to agree to a deed in lieu however. It can just foreclose.

Warren Said:

Is it better to file bankruptcy or let your mortgage lender foreclose on you?

We Answered:

If you have the money, please seek advise from a CPA or qualified financial planner for such a profound/important issue.

With that said: BK and foreclosures are both very bad...if it's choice of a lesser evil then foreclosure might be preferable. If you are being weighted down by large debts and you could still hang onto your house if those debts are discharged, then BK might be the best route.

Annie Said:

What happens to your mortgage if the mortgage lender goes into bankruptcy?

We Answered:

The lenders assets, including your loan, are sold to other lenders. You now owe the same amount under the same terms to another mortgage company. This is actually quite common even if the lender does NOT go bankrupt. My mortgage was sold by the original lender before I signed the paperwork. In the 4 years since, it has already been sold to a 3rd company.