What to Do When Your Mortgage Lender No Longer Exists

What to Do When Your Mortgage Lender No Longer Exists

So you’ve paid your mortgage on time every month and have always made sure that you review your yearly mortgage summary from your lender. You stay on top of things and have developed a good working relationship with your lender, even though they may be thousands of miles away. Then one day you wake up to find out that your mortgage lender has been bought or sold, or even worse they have went bankrupt and just closed up shop! Now what do you do and how does this affect your mortgage?

There is an old saying that nothing is as certain as change. It’s certainly true in modern markets where interest rates can change on a daily basis. When a mortgage lender goes out of business, for whatever reason, there are typically a lot of questions from those who are used to sending in their payments every month. The very first question is “How does this affect me?” – The good news is that in every case your mortgage rates, payments and other terms will not change. The only thing that is likely to change is the address to where you send the payments, and even then that might stay the...