As you may have realized from my previous posts (here and here), I am not happy about the financial bailout. In my opinion, poorly run companies should be punished – in a capitalist market that often happens by them going out of business. It’s the cycle of business (the circle of life, Simba). Businesses open. Businesses close.
So, imagine my reaction when I received notification today from the FDIC that the bank who owns my mortgage is going out of business – and I have 60 days to find a new lender. Let me be clear, fellow Joe Six-Packs, this is not the company who we signed the mortgage with in the first place. This is the bank who PURCHASED my mortgage shortly after we moved into the house in May. Let me also clarify that both of us on the loan have credit scores in the 790-815 range.
I did not realize that some of these financial institutions were going out of business without selling off their debt. How can they – remember, they voluntarily purchased my loan this summer without my knowledge – back out of a contract agreement? I don’t think the bank would be very forgiving if I were to say, “Mr. Bank, I’ve mismanaged my funds, and therefore I don’t want to pay my mortgage.”
So, let me get this straight. My tax dollars just went into a $700 billion bailout package for the finanical industry. My tax dollars. I’ve never been late on a payment, and in fact, we’ve paid early or more than the balance due on several occasions. And, now it is my responsibility to find a new lender and pay closing costs to refinance? I am being punished, yet again, for the poor choices of these banks? Where is my million dollar bonus? Where is my half-million dollar vacation to St. Regis?
Our lender, Rodney Anderson, just called. Rodney is absolutely the best in the business. If you live in Dallas / Ft. Worth, I highly recommend him. (Remember, this isn’t his fault. Fault lies with the bank that purchased our loan after closing.) Rodney said that the FDIC must sell our loan along with the other assets. The FDIC letter is worded so that people think they need to refinance – it reduces the work that they have to do in selling the debt. Interesting scare tactics.
I’ll keep everyone posted. Has anyone else run into this issue?