What would happen if Countrywide files bankruptcy in the middle of our refinance?
JandJ asked:
We have our 1st mortgage w/them and are about to refinance at a better rate in the next 30 days. Rumors are going around they are about to declare bankruptcy.
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We have our 1st mortgage w/them and are about to refinance at a better rate in the next 30 days. Rumors are going around they are about to declare bankruptcy.
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Tags: 1st Mortgage, Bankruptcy, Countrywide
September 2nd, 2008 at 1:06 am
Thier normal business ops would continue so your re-fi should be okay. If you feel uncomfortable try another broker.
September 3rd, 2008 at 1:36 pm
you’ll be fine!
September 6th, 2008 at 8:51 pm
usually when a company does that .. its a restructuring of the company… they will continue to make loans..
but good to know since my moms mortgage is due to reset end of this year..
September 8th, 2008 at 11:29 am
OK…from someone who has had the bad luck of working for 2 lenders this year who have filed BK……NO…they will not continue to fund loans DURING this process. They MAY restructure, but will not, and can not fund on deals during a restructure.
And although the servicing division will be retained, the lending division would be gone. Bye bye. No more.
NOW…on another note…I dont think they will be filing BK…just my opinion and I pray I am not wrong cause I am banking on them pulling out!!
You can also find what you are looking for at another lender so dont worry.
Good luck!
September 9th, 2008 at 2:46 am
You don’t mention whether or not your new loan is with them or not. If not, you have no worries. If it is with them, you will experience an issue. There will be no fundings if a lender has filed for backruptcy.