what benefits will be those borrowers of their morgage, just curious question, they do not need pay mortgage to them any more?
Somebody will scoop up the debt for pennies on the dollar and juice out any value (mortgage payments, foreclosures) possible.
They will send you the Title to your loan since the entity that loaned you the money no longer exists. Congrats on your Free Home!!!!!! Happy new years!!
Does your real disappears if your lender goes out of business? Mortgages donot go away even if your lender is bankrupt. They are sold to other people who service them.
Your loan and my loan were sold long ago and bundled into a mortgage backed security and sold --- somebody in South Korea probably owns the paper now Since the guy across town who has no job and should never have borrowed the money in the first place --- and his defaulted loan is sitting next to mine in that bundle....... I would guess theres a whole lot of geeks combing through all that paper picking out the assets (like my loan and yours) that still have value and doing some exotic financial engineering on them I worked for a mortgage insurer in the 90s and thats what we did during the CA and TX busts of the mid 90's You and I will never know who the proud new owner of the re-engineered paper is. Only hint might be if the servicer changes