What if my mortgage lender or servicer goes belly up?
The problem is the lender's, not yours. Continue paying your mortgage as before. During the bankruptcy process, your lender will transfer your loan file to a new owner or servicer, and both parties will notify you by letter. If you mistakenly send your payment to the old lender's address, you won't owe a late fee if you're within the federally mandated 60-day grace period after the transfer.

But what happens to my escrowed funds for taxes and insurance?
The money belongs to you, held in trust, so it won't become part of the lender's bankruptcy assets. The new servicer will take over making tax and insurance payments from the account. As a backstop, review your monthly mortgage statement and the escrow account analysis that you should receive from the new servicer within 45 days of the transfer. If anything seems awry, call your lender or servicer, the property-tax office or your insurance company.