This is just a hypethetical but what happens if the Lending Company you have your mortgage with goes into liquidation or crashes?
I have wondered about this for a very long time. I mean if say I had a $100,000 mortgage and the company went a…-up would you have to pay out your mortgage immediately to get your title deeds or would you get off scott free (wishful thinking) or would it get taken over by someone else.
When you hear about these big companies going broke hundreds of people lose their life savings but can the same happen to your mortgages?
Any ideas on this subject would be greatly appreciated.All their loans are an asset to the business. They would sell these off to another lender who should continue with the same terms.
Don't worry about this scenario at all.
Cheers,
It happened earlier this year with HLP but hardly even got a mention.
As Simon said a loan is an Asset and can be onsold.
Richard Taylor | Australia's leading private lender
the main point is – who borrowed the money and who owes the money (You) .
Who would lose money if they liquidate the loan. (not you)
If you were a creditor ie you gave them a loan / money then you lose if liquidation occurs!
Usually the loans are on sold to another lending company and your lender changes.WOW Thanks for that info on HLP Richard. We were offered one $40,000 unit in HLP in 2004, and we were told most people had bought at least two. This was through a friend of a friend, who used to be a dentist, and Berlowitz, I think I recall was a former GE hotshot. They were offering 5% first year, 11% second year, 57% third year, 67% fourth year. We had a good chuckle when we saw your post. Hey!….it's a good thing that there is a chronic shortage of dentists. This poor woman sold off a couple of her properties in the Bowral area to put into HLP. Needless to say, we thought at the time 'In a couple of years we will be reading about this in the newspapers'.
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