So, as part of the continuing meltdown of the stock market, all the mortgage companies are getting hammered. The biggest sufferer would seem to be Countrywide Financial. Which funnily enough, is the company holding my mortgage. So, when they go bankrupt, then go Chapter 11. A rather strange concept that doesn't exist anywhere else in the civilized world - Meaning you can stop paying your bills, but stay in business, then if you survive, you screw all the existing shareholders by issuing new stock. Most of which goes to the management that got the company in this mess to begin with. I guess it's called "Capitalism!" But, if Countrywide goes down the tubes, does that mean I get my house for free? And finally, did anyone notice that the company Chairman recently made $13 million selling Countrywide stock. Mmmm, maybe he knew something we didn't. So, I wonder how many BDA's are currently pitching the Countrywide Financial account?
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Welcome to Wall Street.
No, even if Countrywide declares bankruptcy, which is highly unlikely, you will need to continue paying your mortgage each month as normal.
That's part of bankruptcy protection. And even if they sold off your loan at a discount, you would continue to pay a different servicer.
Posted by: Colin | August 17, 2007 1:07 AM | Permalink to Comment