If Your Mortgage Lender Is In Trouble, Are You?

Many may have thought this or even asked this question.  If you have a mortgage with a lender that is not doing so hot and their stock price has tanked, does that hurt you?  The answer is no.  You are not really at risk although it could be an inconvenience but not really a risk.

The number 1 lender out there getting lots of attention is Countrwide.  There was an article on USAToday.com talking about Countrywide and this question of whether any one with a Countrywide mortgage would be in trouble…

The other thing to keep in mind is your mortgage is considered an asset on Countrywide's books. If the company were to run into severe financial difficulty, which, again, there are no indications of currently, your mortgage could be sold. It's not something to be afraid of. Mortgages are routinely bought and sold. You'll want to keep your paperwork to make sure all your information was transferred correctly and there could be some inconveniences, but other than that, it's really not a big deal.

But I want to stress, again, there are no signs that Countrywide is in danger of vanishing. In fact, there's been evidence to the contrary as the company has been able to raise money from outside investors to weather the turbulence in the housing industry.

Read the complete USAToday article at:


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