We all know what happens if you stop making your mortgage payments. The lender warns you of your missed payment, then of your impending default, and once you cross that threshold it initiates foreclosure proceedings. Obviously, you should talk to an experienced Las Vegas bankruptcy lawyer immediately if you are even at the “missed payment” stage. However, what happens when the opposite occurs: Your bank missed payments to its depositors and is now belly-up in bankruptcy? The basic answer is that you’re not in trouble, but be diligent. Here are six steps to take.
- Do not stop making your monthly payments. This is by far the most important step. Just because the bank is gone doesn’t mean your debts to it are. The bank either sold it off to another bank or will declare at as an asset to the trustee in its bankruptcy.
- Check your mortgage for a section on “sale” or “assignment.” It will usually say that the terms of the mortgage remain in force.
- Keep good records. Always good advice, but it’s important because if your lender is circling the drain customer service won’t be its highest priority. Make sure you track what your mortgagee is sending you. Expect even more confusion if you are having problems simultaneously.
- Ensure that your current payments are clearing. Use either personal checks or direct withdrawal so that you have a paper trail (even if it’s digital) of your mortgage being paid. If you pay by money order or through a third party, you won’t necessarily know if the bank is paid.
- If your bank sells your loan and informs you, make sure your previous payment cleared. One of the worst things that can happen in this situation is that your new lender believes you didn’t make a payment even though you did … to your old lender, which didn’t take steps to forward the payment.
- Do your due diligence! The last, and second most important piece of advice here is to check your new bank’s identity. Just because you receive a letter saying your account has been sold doesn’t make it true. A scammer could be trying to get free money from you, and worse, your actual lender will claim it’s missing a payment. Double-check the number on any mailings you receive claiming your mortgage has been sold.
For the most part, a sold mortgage merely requires more attention on your part, but it should be resolved without issue. If it’s not, or if you are the one having trouble paying your creditors, then contact an experienced Las Vegas bankruptcy lawyer.
For more questions about bankruptcy in Las Vegas, please feel free to contact an experienced Haines & Krieger Las Vegas bankruptcy attorney for a free initial consultation. Call us at 1-702-880-5554 to set up your free consultation.