What Happens when Countrywide fails

[jims2321]

This was a topic of discussion around the water cooler today. It appears that Countrywide buyout by Bank of America is probably not going to happen, due to more bad news about Countrywides portfolio, and its downgrade to junk status for its bonds.

Question of the day. If Countrywide is not acquired by Bank of America, and is forced into bankruptcy by it's creditor, what happens to the mortgages they have made?

Jim

[KatieNK]

Good question.

We have Countrywide for our mortgage and I really like them. I don't want to pay BoA every month though!

[disneysteve]

They'll get picked up by another company and you probably won't see anything change from the customer standpoint except for where you mail the payments. I've also got a Countrywide mortgage and I'm not the least bit concerned. Trust me. Somebody is going to collect that money.

[sounderella]

Steve is right. We always tell our clients (especially after Homebanc went under) to keep sending in your payments even if that does happen. There will be a larger company to swoop in. It won't effect you though and you probably wouldn't even notice until they mail you a letter saying they've been taken over and to mail your payment to a new address.

[banana]

I also have CountryWide for my mortgage. I hope it all stays the same.

[LuxLiving]

I wrote them at the end of March. Here's the reply I got then:

"The integration of Bank of America and Countrywide is still subject to regulatory and CFC shareholder approval. Assuming the merger is approved, our customers will be notified in advance of any changes to their accounts in regards to payee, correspondence/payment mailing addresses and telephone contact numbers.

Thanks,

[IMG]file:///C:/Eudora52/Embedded/Re%20When%20will%20there%20be%20news...gif[/IMG]
Daniel Whitehead
AVP, Corporate Office of the President
CB239 Corp Office President
Countrywide Bank, FSB"

[tripods68]

I don't like Countrywide myself.

Usually when the a company goes bankrupt like Countrywide, the distress asset are sold off piece by piece depending the breakup valuation either through an Auctions bid, or to another company. So you see changes in different 800 and payment location.

[StanFatherof3]

My mom's mortgage is also through Countrywide. I suspect that for her, there won't be a big difference. If Countrywide fails, it will just be a different logo on her monthly statement.