If my mortgage service provider is in bankruptcy, do I still have to pay what is left on my morgage?

I’m current on my mortgage now. I received a letter stating that my mortgage service provider is in bankruptcy. Am I legally obligated to continue making payments?

Asked on June 1, 2012 under Real Estate Law, Wisconsin

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Yes, you are still legally obligated.  The mortgage payments are an asset of the debtor and they would be part of the bankruptcy schedule submitted.  The letter you received should have indicated what you should be doing.  But if not I would contact the trustee and see about paying the payments in to the bankrultcy court.  Do it by check and get a receipt.  Good luck.


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