Does anybody know what happens to loans/mortgages when a bank fails?
By jonesy123
@jonesy123 (3948)
United States
July 20, 2008 8:38pm CST
By now we all probably heard about IndyMac closing its doors. With more banks struggling questions arise among the average consumers. If you have deposits in the bank you get them out until a certain level, I think it's $100k, then it's just a percentage, since the deposits are FDIC insured. But what happens to the mortgages/loans? It's doubtful the debtors are off the hook, although that would be nice, lol. So, who takes over those? Whom would the debtors have to make their payments to? Does anybody know?
1 response
@baileycows (3665)
• United States
21 Jul 08
Usually another company has or will buy our the loans. They do not have to tell you who they sold it to. You just recieve something in the mail within 30 days of selling the loan to tell you who your new mortgage company will be.
@jonesy123 (3948)
• United States
21 Jul 08
Thanks. I figured it would be something like that. Can they change the terms on you like imposing a higher rate? or changing your fixed rate?
