what happens if the bank you have a morgage with goes bankrupt?

I read an article that said that one bank in california failed and two are backed up by the government to keep them in business. So what happens to those who have a morgage with the bank that goes under?

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  • ?
    Lv 5
    1 decade ago
    Favourite answer

    It becomes the property of whatever company picks up the pieces of the failed bank.

  • 1 decade ago

    All reputable banks are backed by the FDIC. If the bank "goes under", likely another bank will buy up the mortgages, and you'll simply be writing the check to another lender. I'm certain that in your mortgage itself there's a clause about what happens if the bank goes under.

  • Anonymous
    4 years ago

    In the United States, up to $250,000 are guaranteed for most banks. Great Britain has similar laws.

  • 1 decade ago

    Yes I agree, your mortgage will be taken over by another bank. In fact, if you look at your mortgage information, many of them sell your mortgage anyway. I've owned 3 homes and only one of them was kept by the original mortgage lender, and that is CountryWide who do not sell theirs.

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  • 1 decade ago

    GOVERNMENT will take over, sell the properties of the said

    bank and return the MORTGAGE and money in proportion

  • SDD
    Lv 7
    1 decade ago

    IndyMac Bank reopened today as IndyMac Federal Bank. They have all of the assets of the old bank including all loans. That's exactly what happens in bank failure.

  • Tim
    Lv 7
    1 decade ago

    The assets (loans) are sold to someone else. You will receive notice and send payments to the new company. Just keepo sending in payments like usual in the meantime.

  • Anonymous
    1 decade ago

    The producing loans are always sold off to other mortgage bankers.

    You won't be wiggling out of your mortgage, although that would be poetic justice, wouldn't it?

  • 1 decade ago

    well....... your ******.

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