Mortgage Services and Loan Tips

What happens to my mortgage if my lender files for bankruptcy?

There seem to be issues for Countrywide Home Loans and the “B” word seems to be surfacing in some news items and discussions. If something were to happen such as a lender going bankrupt, what happens to the Mortgages? Would mortgages be sold off to other lenders and terms remain the same, effectively making the occurance transparent to mortgagees? Or are there risks to the mortgagees?
And for what it’s worth, whether or not Countrywide is at a real risk of bankruptcy or not, I’m just wondering in general what it means if such an occurance takes place.

Your first instinct is correct. The mortgages would be sold to another lender and your terms would remain the same. Although it would be nice if they let you off the hook when the company went under!