Location: Georgia
Submitted 09/26/12 10:53 AM

Q. What happens when a lender goes out of business and the new servicing company can't produce the note and it has not been recorded at the courthouse? They just responded with the same paperwork we originally got at closing. MERS was the nominee and they say that Fannie owns the note. Shouldn't there have still been an assignment? What would happen if we went to sell? Thank you.

 

Answer #1
Submitted 09/26/12 11:01 AM
Tammy Lankford- lake sinclair (706-485-9668) (Tammy Lankford/Broker Lane Realty Lake Sinclair-Central GA): Broker Owner in Eatonton, GA Tammy Lankford- lake sinclair (706-485-9668) (Tammy Lankford/Broker Lane Realty Lake Sinclair-Central GA)
Broker Owner
Eatonton, GA

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A.

was it a servicing lender or the owner of the note that went out of business?  My advice would be to contact the attorney who closed the loan for you with a copy of the note and file number and ask their advice.  Assignments can take a while to be recorded, but a real estate attorney should be able to give you some answers and peace of mind in making sure it's done right for when you get ready to sell.
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