If your mortgage company goes bankrupt, you could lose your house

[soko]

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/