i have been watching the big banks and the gov't . if the holder of my home loan fails it's next attempted merger and goes under who will assume the loan? how does the bank split things up and sell off the loan papers? i'm sure it would be similar to other title loan sales. i don't know how long i will have before things get set up to pay payments to whoever buys the loan. two of my accounts are with the same bank and i could be left short on cash. who knows if the FDIC will be there for me when the time comes?
what happens to loans when a bank colapses?
- Thread starter hollybird
- Start date
reinbeau
Moderator Extraordinaire
Does your bank actually hold your mortgage? Many don't, they sell them to the secondary market. When a bank fails I know the loans are considered an asset and are sold to whoever takes over the bank. Now lets home there's someone to take over the bank!
enjoy the ride
Sufficient Life
Presuming that the bank is not just the servicer (in which case the owner of the loan just finds another collecter,) the banks actually go into receivership. These people run the bank until it can be sold or the the salable parts can be sold (your mortgage forr instance.) There is always someone to collect money-lol
attack-cat
Power Conserver
Eventually someone will buy the loans. The FDIC insures up to a certain amount but if your bank shuts its doors early on Friday and you have no money then you are stuck for the weekend at least. You have to wait to get the money. I put in what amount I need to cover the checks I mail out the same day. And I keep a $20.00 cushion in the bank. Besides, with gas for the cars, the price of food and the price of animal feed there isn't much of a paycheck left anyway.
