Escrow & Title

In Alaska, when a mortgage company goes bankrupt, the mortgages it originated and still holds are:

AAutomatically cancelled
BTreated as assets of the bankruptcy estate and transferred to a new servicer or sold to investors✓ Correct
CAutomatically assumed by the Alaska Housing Finance Corporation
DReturned to the original borrowers free and clear

Explanation

Mortgage loans are financial assets. When a mortgage company declares bankruptcy, its loan portfolio is treated as a bankruptcy estate asset.

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