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If Your Mortgage Lender Or Servicer Is Closing Or In Bankruptcy

Posted: June 22, 2019 at 10:52 am   /   by   /   comments (0)

No one likes to borrow money. It is never a great feeling knowing that you are going thousands of dollars in debt. Of course, when it comes to buying high ticket items like cars and homes, you might not be left with any other option but to borrow money. That being said, you probably already know what is going to happen when you miss that first payment. The lender will warn of the missed payment and threaten to put the loan in default. If the payments are not caught up then either the home will go into foreclosure or the car will be repossessed. Obviously, this is a situation that you want to avoid at all costs, but what happens when the lender can’t keep up their end of the deal? What if the lender is unable to keep lending you the money that they promised because they are going out of the business of filing bankruptcy?

Never Stop Your Monthly Payments

When most people find out that their lender or banking institution is going bankrupt they tend to stop making payments. This is something that you want to avoid doing at all costs, regardless of how tempting it is. In fact, this could be the very worst thing that you do because the debt is not gone. Just because the lender or banking institution is no longer there it doesn’t mean that your debt isn’t. More than likely your debt has been sold off to another company and they are eventually going to want those back payments with higher interest rates.

Keep Track Of Everything

You probably think your life is hectic and you always have something going on. Well, throw in bankruptcy and imagine how hectic your life would become? This is exactly how your lender or mortgage company feels right now. Their customer service and billing departments might not be on top of their game due to everything that is going on within the business. This is why you will want to make copies and keep track of everything. Copy and file all the payments that you make, keep every piece of documentation that the company sends you, and record any phone conversations that you may have with the company during the time. Just remember because your bank or lender goes bankrupt it doesn’t mean that you don’t have other lending options like låna pengar snabbt

Changing The Loan Terms

You just learned that when a banking institution or lender goes bankrupt they usually sell off their debt. This means that someone else now owns your debt. This new company will usually send around a letter informing you of the change and the actions that you are supposed to take. However, you also need to keep in mind that the new lender can now alter your current contract. If the lender feels like he or she needs to raise the interest rates he or she can do so. If the lender wants to force the back payments that you owe he or she can do so. This might seem totally unfair, but just remember that you can always take your debt elsewhere.

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