What happens to mortgages if the bank goes out of business and no one wants to buy them?
boilerette72 asked:
I hear that if a bank goes under other banks will buy these mortgages. But with so many mortgages exceeding values of homes, many banks might not want to buy the mortgages. What would happen if a bank goes under, and no one wants to buy their crappy mortgages?
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I hear that if a bank goes under other banks will buy these mortgages. But with so many mortgages exceeding values of homes, many banks might not want to buy the mortgages. What would happen if a bank goes under, and no one wants to buy their crappy mortgages?
March 13th, 2010 at 11:08 am
Free houses!!!! nom_nom_nom
March 13th, 2010 at 4:27 pm
Someone would buy them but not for the total value. An investment firm would buy them for some low percent of their actual value and attempt to collect the debt. If they are able to, they would make a large profit. If they can’t, they are then the owners of the property. jake69
March 16th, 2010 at 5:02 pm
Phone the bank tomorrow and ask what is happen get case # and operater nztip
March 18th, 2010 at 9:57 pm
It would not happen. Some other lender would purchase the mortgages, simply because there is value there. No bank has ALL crappy mortgages. Another lender(s) will analyze the quality of the ‘paper’ and make a decision what the entire package is worth, and would purchase same, perhaps for less than the actual outstanding amount. acermill