If the finance company closes what will happen to my loan there?
Full Question:
Answer:
If a lender declares bankruptcy, their assets, such as payments made under your loan, will typically be sold to another lender. You will still be obligated to make payments and should keep accurate records of all payments made. In most cases, government sponsored entities such as Fannie Mae, Freddie Mac, or Ginnie Mae will manage the transfer.
The terms of your loan should always stay the same, no matter who holds your loan. It's important that you thoroughly review the details of your mortgage agreement. The interest rate and the type of loan should not change.
When a lender sells a mortgage, the debtor should receive a letter from the company within 15 days that outlines the new mailing address and payment deadline. You should also be given a toll-free telephone number to direct inquiiries to.
You must get a grace period of 60 days to get your payments to the right address on time. If you have any complaints or issues, write a letter to your lender. The company is required to send you a reply within 2 months of getting your letter.
