Equity Home Loans

Should I continue finalizing my home loan with CountryWide?

As we all know, they are facing bankruptcy. I am one of the last ones that they offered 100% financing with, and my terms are great, even other mortgages companies told me they cannot beat what Country Wide offered me. So what can happen to my loan if they go bankrupt? Also, should I try to seek financing elsewhere because of this fact?

Public Comments

1. if you sign with them, the contract you sign will be sold to another company. your terms will stay in place and cannot be changed without your signature. should you have any questions, the federal governement has set up a National Hotline for questions 1-888-995-4673 this number was publisized on the CBS Nightly News recently. good luck
2. Sure why not? If they go bankrupt, like New Century, then they will just sell the loans to some other company. It's not like they can call the loan due. Regards
3. Yes, because a bankruptcy AFTER you have closed is not going to affect the terms of your loan in any way. I personally have many clients that have loans through Countrywide, and I have encouraged them to proceed. If you are mid-contract, DO NOT restart the process through another lender...if you cannot close, you will be in breach of your contract.
4. From a realtors perspective I would say that if Countrywide is willing and able to make the 100% loan work, then stick with them! At the closing table clients are notified and sign a disclosure to acknowledge that the bank may and likely will sell the mortgage to another bank. A word of caution---don't use some unknown and unproven mortgage company. You will be asking for big trouble!!! Best wishes with your new home!!!
5. CLOSE BEFORE IT IS TOO LATE.... Your loan will be sold anyway and they are just a third party lender. Don't miss out on your "locked rate".
6. Don't know about CountryWide but I saw on the news that a local mortgage company filed bankruptcy. The interview was with a person who closed on her new home before the bankruptcy was filed. Five days later, her loan had not been funded. Therefore the sellers and their mortgage company weren't paid and the buyer didn't have keys. Buyer and Seller were all in limo.