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Originally Posted by Poster  I had originally put this post in an other thread, but meant to put it here, so:
This may be the most informative and educational thread I've ever read. Thank you to all who have contributed to it and my edification. Please continue as I feel like I'm in the company of giants.
Dan, if I understand correctly, the total assets of the bank you listed earlier is actually debt they hold, is that correct? So, when they liquidate to lets say 10% of their value, what happens to the other 90%? What if I have a mortgage with one of these banks that fail, what happens to my mortgage? Can you point me to some sort of educational sites where I can catch up with some of you?
Sorry if I sound dumb here, but I'd rather expose my ignorance with the hope of learning.
Thanks again, everyone! |
No one can do anything to you if you continue to pay your mortgage consistent with the terms of you mortgage contract even if the bank you owe it to goes belly-up. The bank or lending institution that you owe it to may collapse or be taken over but that just means that your check goes to someone else now. However, if you get in trouble on your payments and want to renegotiate your payments or re-finance, there may be no one left there who can help you , or on the other hand, there may be a new institution with more options and some government help. That part is unknown at this point and is being worked out in Congress.
Winter