Best answer:
Answer by Ed Atun
Perfect timing for your question. IndyMac Bank in California was closed yesterday. One of the biggest mortgage holders in the USA. You are supposed to keep making your payments. The FDIC is actually staffing the building to keep the paper moving.
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Foreclosures!!! Already happening all ove the US. SAD!!
ReplyDeleteWe are in a recession-depression.......people are already stashing money at home in stead of banks....like in the 50's..Scarey!!
Loans do get packaged and sold as mortgage-backed securities, but that is not the point. The point is, which bank is SERVICING your loan.
ReplyDeleteIf the bank that is servicing your loan (the Bank you send your payment to) falters, I would call the FDIC to let them know you want to know where to send your payments.
I wouldn't be surprised if people get charged for late payments during these transition periods and even get dings to their credit.
So, you do have to keep paying (and, on time), and I would advise being proactive so the new servicer doesn't find a way to charge you a late fee or ding your credit score.
As a person who has borrowed money from that bank, you still need to pay and pay on time. If you don't pay, the institution that takes over those loans will foreclose or re-possess. You borrowed the money and you still owe it. You may end up paying someone else after that asset is sold off.
ReplyDeleteIt means absolutely nothing for the person with a loan from that bank. It means something significant for someone with deposits at that bank. The FDIC only insures the first $ 100,000 of deposits and anything over that amount is at risk. :-)
good luck!