You may receive details that the mortgage has been transferred to another lender but the terms of your investment property mortgage loans will remain in effect until the mortgage is paid off. If you are concerned, call your current mortgage company at the customer service number located on your property mortgage statement.

What if my investment property mortgage loans lender shuts down before my loan closes?

Until recently, we’ve worked for certain Australian mortgage company, the nation’s 10th largest lender. And, like many other lenders, that certain Australian mortgage company bankrupt and shut down their mortgage operations with little to no warning. While this is hard for the employees of the said mortgage company and the other lenders that have had the same fate, what about the people who are in the process of purchasing or refinancing their homes? What do they do?

Unfortunately, in the case of the said company, borrowers with over $800 Million worth of investment property mortgage loans went to the closing table on July 30 & 31 expecting to close on their loans. Since the said company had no money to fund these loans, these borrowers had to cancel their closings and re-apply for a property mortgage with another lender. In many cases these investment property mortgage loans that did not fund affected even more closings that were dependent on these closings.

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Property investment mortgages guide