40,000 job lost in the blink of an eye. It is incredibly sad to see so many jobs lost. This article in SFGate is an excellent summary of what has happened this year. The construction industry has lost 20,000+, and the National Association of Realtors reports declining membership as well.

Some of these losses can be a good thing. Hopefully the untrained and unscrupulous will go away. Real estate has been booming over the last five years. Sellers have made easy money, as have loan brokers and real estate agents. A leveling out of the market is not a bad thing. A leveling of the playing field for buyers and sellers is ok.

How many more mortgage companies will go down before it levels out? How far up will rates goes? Where will housing prices go?

These are all excellent questions, which we can only speculate at.

Have an adjustable rate mortgage that will be reset within the next 12 months?

Get a mortgage check up sooner rather than later. Actually, call a mortgage broker NOW.

According to Sofia Nadjibi, a mortgage broker with Union Trust Mortgage, borrowers struggling with monthly payments now might be shocked to know that monthly payments can double in some cases once an ARM resets.

Double???? Now that could be pretty scary! If you ARM is about to reset, call a qualified mortgage professional today to discuss your options!

What should I do if my lender goes out of business? Who do I make my payments too? These are great questions that I have been asked this week.

So what do you do?

Make your payment as usual. Often times, the person you make your payment to is the company servicing the loan, not the actual holder of the note. If the loan company servicing your loan changes, you will be notified. In the meantime, make your payments as planned.

This post from David Podgursky, a mortgage broker in Lake Worth, Florida. has a great explanation about loan servicing.

The bottom line- you still owe your upcoming mortgage payment, even if your lender has closed their doors.  (Darn it!)