What Happens If My Mortgage Lender Goes Broke?
The Australian home loan market has seen its ups and downs. Some of those downs have claimed several lenders. Financial institutions have shut down when the market went against them. The loan they issued continued to live.
If a mortgage lender goes broke, their accounts and loans move to another. Even when lenders remain in good standing, selling debt remains a common practice. Prime mortgages become difficult to service. However, others don’t mind servicing them. They purchase the debt and service it thereafter.
Sometimes homeowners don’t realise that their loan resides with a new lender. They find out because the new financial institution mails them a notice. In many cases, the repayment information remains the same. That’s why it’s so important to set up automatic repayments.
When the switch to a new lender is significant, they send a notice. If you don’t take action, they send additional notices. Financial advisors encourage homeowners and mortgage holders to reach every piece of mail that arrives from their lender and financial institution.
Homeowners who work with Mortgage House can rest assured that our company remains stable and provides mortgage choices.
Mortgage Lender Goes Broke Conclusion
If a mortgage lender goes broke, your home loan continues to live. Financial institutions start making plans long before they shutter their doors and windows. Your loan becomes part of a package. A different lender buys it.
Mortgage House services its clients throughout the life of their loan. We stick with you if you stick with us. For more information, contact our lending team.