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puglogic
5-23-12, 11:12am
I received a letter yesterday from the large company that holds my home mortgage, letting us know they've filed for Chapter 11 reorganization.
http://www.washingtonpost.com/business/ally-financial-says-its-residential-mortgage-unit-seeks-chapter-11-bankruptcy-protection/2012/05/14/gIQAOCATOU_story.html

Really? Sigh. (I didn't choose these jokers - my loan was reassigned to them by another mortgage company)

This made me think, and worry. Has anyone ever had this happen? Does bankruptcy give them carte blanche to change the terms/interest rate on a mortgage loan? Not even sure where to research this, and I won't believe a word of what THEY tell me, so if anyone has any suggestions please let me know. Thanks.

Zoebird
5-23-12, 5:58pm
Go and talk to a lawyer. They may be able to provide resources and insights.

HumboldtGurl
5-24-12, 1:39pm
I don't want to scare you, but make sure you know who is getting your payments. This same situation happened to friends of ours whose primary bank was Lehman Brothers. When Lehman went under, our friends couldn't verify who was actually cashing their mortgage payments. Now, nobody will claim ownership of their mortgage (BofA says "ABC Bank owns it" and ABC Bank says "BofA owns it"!). This has been going on for two years and as a result, our friends cannot refi their home. They are currently in a lawsuit over this.

puglogic
5-24-12, 5:45pm
HumboldtGurl, seems like your friends should just miss a payment, and see who barks! :) I wonder if that wouldn't flush out the true owner quickly enough.
Good to know this, thanks.