Planetarion Forums - View Single Post - what would happen if your mortgage lender went under?

Zar · 15 Mar 2007, 20:09

I asked one of the case managers at work today (I work in corporate Insolvency) and he basically said that if the mortgage company became insolvent it there are a few options:

1) Company goes into liquidation and the IP will attempt to sell the company to another which will take on debt. Your mortgage repayments would stay the same and just be transferred.

2) If no buyer could be sought - it could very well remain in liquidation until all outstanding debtors (& creditors) have been cleared. The IP could also attempt to try to come to an arrangement with the creditors either through a company voluntary arrangement or otherwise (unlikely in this case).

3) The company could be put into administration. Although administrations generally only last 12 months - there are special provisions that can extend this... he then went on about something to do with banks and certain institutions not being allowed into administration but I didn't really understand so switched off.

15 Mar 2007, 20:09	#26
Zar Chief over all Monkeys Join Date: Apr 2003 Posts: 1,771	Re: what would happen if your mortgage lender went under? I asked one of the case managers at work today (I work in corporate Insolvency) and he basically said that if the mortgage company became insolvent it there are a few options: 1) Company goes into liquidation and the IP will attempt to sell the company to another which will take on debt. Your mortgage repayments would stay the same and just be transferred. 2) If no buyer could be sought - it could very well remain in liquidation until all outstanding debtors (& creditors) have been cleared. The IP could also attempt to try to come to an arrangement with the creditors either through a company voluntary arrangement or otherwise (unlikely in this case). 3) The company could be put into administration. Although administrations generally only last 12 months - there are special provisions that can extend this... he then went on about something to do with banks and certain institutions not being allowed into administration but I didn't really understand so switched off.