What Happens to Your Mortgage if Your Bank Fails?

fivecentnickel.com: Over the past several weeks, I’ve received a number of comments and e-mails from readers wondering what would happen to their mortgage if their banks fails. Is the loan terminated? Do they have to pay it back immediately? Or do they get to walk away free and clear? In short, the answer to all three questions is an emphatic “no.”

From the bank’s perspective, your mortgage is an income-producing asset, and it can be sold to another institution at any time. In fact, this is quite commonplace…

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