My lender went out of biz!

August 12th, 2007 By Ginger Wilcox

Writing Your Mortgage CheckWhat should I do if my lender goes out of business? Who do I make my payments too? These are great questions that I have been asked this week.

So what do you do?

Make your payment as usual. Often times, the person you make your payment to is the company servicing the loan, not the actual holder of the note. If the loan company servicing your loan changes, you will be notified. In the meantime, make your payments as planned.

This post from David Podgursky, a mortgage broker in Lake Worth, Florida. has a great explanation about loan servicing.

The bottom line- you still owe your upcoming mortgage payment, even if your lender has closed their doors.  (Darn it!)

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  1. [...] Blog by the Bay is talking about what to do if your lender goes out of business. [...]

  2. Ginger – thanks for the mention. I actually have this information written with more details on my blogsite.

    I think it is important that homeowners know that they need to stay on their toes and keep up with payments!

  3. Absolutely! You do have great information on your site David- you are the mortgage pro! Thanks for the great comments and information.

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