You may think that the lender will hold and service your loan until you pay it off or sell your home when you get a mortgage.
Making Re Payments to Your Mortgage Servicer
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ThatвЂ™s often perhaps not the way it is. In todayвЂ™s market, loans therefore the rights to solution them frequently are purchased and offered. In many cases, the organization which you send your payment to is not the company that owns your loan.
A house is one of the most purchases that are expensive make, so itвЂ™s essential to understand who's handling your payments and that your home loan account is properly managed. The Federal Trade Commission (FTC), the nationвЂ™s customer protection agency, wants one to understand what home financing servicer does and what your legal rights are.
Mortgage Servicers Their Duties; Your Legal Rights
A mortgage servicer is in charge of the day-to-day handling of your home mortgage account, including collecting and crediting your month-to-month loan re payments, and handling your escrow account, when you yourself have one. The servicer is who you contact for those who have questions about your mortgage loan account.
An escrow account is a fund held by the servicer that you spend into for home taxes and property owners insurance.