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#1
09-12-2007, 02:56 PM
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If your mortgage company goes bankrupt, you could lose your house
Seems like there is no good news nowadays. Used to be common knowledge that if your mortgage servicer went under, your loan documents would simply be bought by another lender and serviced by them. Well that's not the case for American Home Mortgage who stopped servicing their loans but has yet to sell their servicing rights because they are trying to find investors who will bid more.
"Bottom line: borrowers could be delinquent on property taxes or insurance and not even know it." http://online.wsj.com/article/SB1189...googlenews_wsj http://www.housingwire.com/2007/09/11/am...rvicing-rights/ 
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#2
09-12-2007, 03:57 PM
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Re: If your mortgage company goes bankrupt, you could lose your house
Click a mouse lose your house.
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#3
09-12-2007, 05:43 PM
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Re: If your mortgage company goes bankrupt, you could lose your house
Didnt read the article as I'm short on time but I'm assuming this would only occur if you have a PITI type loan which I think are really only popular in certain markets...I could be dead wrong on this of course however.
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#4
09-12-2007, 05:47 PM
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Re: If your mortgage company goes bankrupt, you could lose your house
[ QUOTE ]
Didnt read the article as I'm short on time but I'm assuming this would only occur if you have a PITI type loan which I think are really only popular in certain markets...I could be dead wrong on this of course however. [/ QUOTE ] I believe escrow requirements for property tax and insurance are pretty much universal, except for subprime.
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#5
09-13-2007, 02:47 PM
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Re: If your mortgage company goes bankrupt, you could lose your house
nope, its usually not required by the lender in higher down payment scenarios. Its much more common in 100% financing or stated income type scenarios. I have had 3 different home loans and never had impounds. I just got my first loan that had impounds on an investment property I bought, and the only reason is that I had two lenders close their doors and had it was too late to switch again when I saw that there were impounds. It can affect your rate or the rebate your mortgage broker gets. So its worth asking about. If you can save 1/8% on your rate by having impounds then it might be worth it.
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#6
09-13-2007, 03:55 PM
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Re: If your mortgage company goes bankrupt, you could lose your house
[ QUOTE ]
nope, its usually not required by the lender in higher down payment scenarios. Its much more common in 100% financing or stated income type scenarios. I have had 3 different home loans and never had impounds. I just got my first loan that had impounds on an investment property I bought, and the only reason is that I had two lenders close their doors and had it was too late to switch again when I saw that there were impounds. It can affect your rate or the rebate your mortgage broker gets. So its worth asking about. If you can save 1/8% on your rate by having impounds then it might be worth it. [/ QUOTE ] Looks like you're right - as long as LTV <= 80, most lenders waive escrow requirements, though a lot of people don't take that waiver.
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#7
09-13-2007, 04:34 PM
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Re: If your mortgage company goes bankrupt, you could lose your house
really unlikely that a person could lose their house. it takes a couple years for back taxes to get you and you have plenty of time to pay them.
insurance isnt a problem as the company will let you know your policy isnt being paid.
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