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!)