this is nothing to do with me btw just something that was discussed at lunch

what would happen if the bank or company that provided a mortgage went bust? who would a house financed by that mortgage belong to, would the 'owner' find themselves with a free house?? none of us here have a clue

hahahaah you wish!!!

just happened to be on another website (yes, there are others) and this was discussed.

quote:

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From the Times Online

Mortgage customers are in a different boat because they owe the bank money.

The likely outcome is that another lender would take over the mortgage book and existing mortgage deals would continue as normal.

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surely a liquidator would be appointed and they would chase all outstanding debts or assets.

I believe, but i could be totally wrong.....

That the mortgage would just be sold on to another bank. Mortgages are just another 'asset' for banks and would just be treated as such and sold off to cover the banks outstanding depts.

(Altough i think that mortgages are seen as a bit of a liability at the moment so im not sure how much they would be worth)

[Edited on 10/10/08 by Duncan_P]

Yeah the liquidators would sell of the mortgage book to someone else. You own the house anyway the mortgage is a charge over the property.

cheers, now I can look clever

quite righ the any mortgage/bad debt and savings would be purchased be another bank. Which is what happened b&b, santander bought the savings and the governent (us) have bought the bad debt. Or at least thats how I understand it.

The mortgage is an asset of the company (You have agreed to pay the company hundreds of pounds every month). This asset can be sold. It was the sale of American "sub prime" mortgages that caused this whole thing.

I'd pay you a few thousand pounds for a "guaranteed" £500 per month for the next 10 years, backed up by I get to sell your house and keep the money if you stopped paying.