Upside Down Mortgage

Under Water Loan

Question: Home loan problem, if my loan lender bankrupt, what will happen to me?

Recently bought a house, and took out a 15 yrs residential loan. I don't know the lender's full name, I just know there is the word "Provident" in it, and it's backed by Mannie Mae and Freddi Mac. I just wondering what would happen if my lender bankrupt one day? Who do I pay off my loan to? What if Mannie Mae also go under water. I heard it's not doing well these days. Does the government have any other measure to insure my loan? Any help would be appreciated. Thanks

Answer: The names you are thinking of is Fannie Mae and Freddie Mac. These two companies will survive as they are partially a government company.

Provident did declare bankruptcy in the last week of so. Who ever sent you a letter indicating that you should send your monthly payment to them should be who you pay each month.

Provident has probably sold your loan and is no longer in the picture. Fannie Mae or Freddie Mac which ever one purchased your mortgage has companies that will do the collecting for them.

If the company that is doing the collection change, you will be notified of the new company you should send your payment to.

Provident going into bankruptcy has nothing to do with your monthly mortgage payment and who you will pay your payment. You will be notified one way or the other.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

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