what happens if the bank you have a morgage with goes bankrupt?

It becomes the property of whatever company picks up the pieces of the failed bank.

All reputable banks are backed by the FDIC. If the bank "goes under", likely another bank will buy up the mortgages, and you'll simply be writing the check to another lender. I'm certain that in your mortgage itself there's a clause about what happens if the bank goes under.

In the United States, up to $250,000 are guaranteed for most banks. Great Britain has similar laws.

Yes I agree, your mortgage will be taken over by another bank. In fact, if you look at your mortgage information, many of them sell your mortgage anyway. I've owned 3 homes and only one of them was kept by the original mortgage lender, and that is CountryWide who do not sell theirs.

GOVERNMENT will take over, sell the properties of the said

bank and return the MORTGAGE and money in proportion

IndyMac Bank reopened today as IndyMac Federal Bank. They have all of the assets of the old bank including all loans. That's exactly what happens in bank failure.

The assets (loans) are sold to someone else. You will receive notice and send payments to the new company. Just keepo sending in payments like usual in the meantime.

The producing loans are always sold off to other mortgage bankers.

You won't be wiggling out of your mortgage, although that would be poetic justice, wouldn't it?

well....... your ******.