Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Why There is a Need to Understand the Mortgage Service

By DJ Willis Subscribe to RSS | February 18th 2012 | Views:
loading
 
  



Most folks have discovered mortgage servicing, but few understand exactly what it is and just how it influences a homeowner's mortgage as well as the lenders. This type of servicing handles and procedures financial transactions such as accepting and recording the payments including late payments and assessing claims or liens associated with the property.

Other duties of the servicer include determining the variable interest rates which are employed for adjustable rate loans and make payment on insurance and taxes from the escrow accounts which have been set up. Additionally they negotiate workout packages and adjustments to the event of a default. Supervising or conducting the entire process of foreclosure is yet another function the service can provide.

The mortgage industry has faced plenty of good and the bad the past several years. Many changes have occurred, and some of those changes involved the mortgage servicing areas of most mortgages. Homeowners have become frustrated when their mortgage has been transferred to another financial institution. Often the mortgages are improperly handled resulting in extreme difficulties for that homeowner.

Many homeowners believe the servicer is lender. They are often the lending company, but many times the beneficial rights are sold to investors. These rights range from the payments of both principal and interest on the mortgage in question. The investors include some well known names in the market in addition to private investors that cope with mortgage securitization transactions.

Recently, some mortgage servicing companies happen to be suspected of unsuitable business practices. Among the pitfalls associated with the practice is that payments are not remitted to the account. Extra fees are then charged to the homeowner and may result in foreclosure whether it continues. Maybe it's a simple administrative error, or it could be deliberate misappropriation of funds.

Another practice that can be detrimental to the homeowner happens when the servicing company charges fees for inspections and collection letters. They might also charge additional interest to the homeowner. Nonetheless they have no legal right to demand the extra fees and interest. The servicing companies may also manipulate the homeowner's account so that it appears to be in default if this really is not.

Mortgage transfers are just a method for the original mortgage holder -- usually a bank -- to make money. But you do have rights with regards to mortgage servicing. For instance, the relation to your loan can't be changed. Also, there is a grace period which means there is no penalty should you accidentally send the payment to the old bank. Plus there is a complaint resolution process in case something happens.

Please be aware that it's necessary to keep thorough records of payments with copies of the checks or money orders used to make the payments. By doing this you can reconcile your records with the servicer's payment history. Look into the billing statements completely for any unwarranted fees or uncredited payments. Saving all your payment documentation might help resolve any complaints in your favor.

DJ Willis - About Author:
Jordan is very comfortable with mortgage software and giving a loan administration. He has been in the business going on 10 years now. Using mortgage servicing software can provide you with some insight regarding how to work certain mortgage situations.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/mortgage-articles/why-there-is-a-need-to-understand-the-mortgage-service.htm

Related Mortgage Articles Subscribe to RSS

What all you should know about best adjustable mortgage rates
Published by Jack Smith on June 23rd 2012 | Mortgage
Best adjustable mortgage rates should be taken when you have a steady income and there is a slump in...
 
Should you go for a 15 or 30 year mortgage?
Published by Apil Gupta on June 24th 2012 | Mortgage
There are many times in life when one wants to possess something due to the sheer need of it, but is...
 
Looking for refinance mortgage loan - How to find the right one
Published by Apil Gupta on June 24th 2012 | Mortgage
In case you are looking to refinance mortgage loan for your home, there are many things that need co...
 
Search well in the market and get best mortgage rates
Published by Jack Smith on June 25th 2012 | Mortgage
For getting best mortgage rates from the market, you need to pull up your shocks and search well in ...
 
Fall in mortgage rates leads to better home sales
Published by Apil Gupta on July 16th 2012 | Mortgage
Riding high on the phenomenally low mortgage rates, there has been an increasing demand for new US h...
 
The real truth about mortgage rates
Published by Jack Smith on April 16th 2012 | Mortgage
While mortgage rates may differ with several companies and diverse plans¸ a good, hard-working barg...
 
Exploring best adjustable mortgage rates as per expectations
Published by Jack Smith on July 23rd 2012 | Mortgage
The act and need for searching best adjustable mortgage rates is common in the world, where people s...
 
Find the perfect california mortgage broker online
Published by Apil Gupta on June 24th 2012 | Mortgage
The importance of finding a good California mortgage broker online is paramount in today's times, pa...
 
Adjustable mortgage rates opening paths for money saving
Published by Jack Smith on July 25th 2012 | Mortgage
In the field of finances, where Adjustable mortgage rates are becoming the most picked choice for al...
 
Why is an adjustable rate mortgage so popular?
Published by Apil Gupta on June 24th 2012 | Mortgage
An Adjustable Rate Mortgage (mortgage ARM, for short), also known as the lender's Standard Variable ...
 
Beware of Yield Spread Premium on California mortgage rates
Published by Apil Gupta on June 24th 2012 | Mortgage
If you are going to refinance your mortgage because the California mortgage rates on your current pr...
 
Most excellent home mortgage calculator plus home buying tips
Published by Andrew Watson on December 30th 2011 | Finance
For a number of people it certainly is very much common to look around for best mortgage calculator....
 
US mortgage rates hit record low at 3.66%
Published by Apil Gupta on July 16th 2012 | Mortgage
There was a significant drop in the US mortgage rates for 30 year fixed loans...
 
Bad credit and mortgage refinance option
Published by Kam Brar on December 16th 2011 | Finance
As people think, it is not easy to get mortgage refinance with bad credit. There are various factors...
 
Understand and consult bad credit mortgage rates
Published by Jack Smith on July 23rd 2012 | Mortgage
The people seeking bad credit mortgage rates first require to conduct complete research and pay atte...
 
The best mortgage rate can make your dream come true
Published by Jack Smith on April 12th 2012 | Mortgage
The best mortgage rates can fulfill your dreams at a dreamlike cost. Get yourself the best deal in t...
 
Low interest rate brings cheaper mortgage deals
Published by Sandra Jeux on January 25th 2012 | Mortgage
Interest rates are at the lowest side for mortgages at current time which is leading people of the c...
 
Tips to taken into consideration while choosing mortgage brokers
Published by Geno on March 28th 2012 | Finance
Majority of the home buyers get struck off when it comes to mortgage loans. Lack of knowledge about ...
 
Consult well about Adjustable mortgage rates before selecting
Published by Jack Smith on July 23rd 2012 | Mortgage
Adjustable mortgage rates are turning worldwide popular because they offer variations on the rate of...
 
Best mortgage rate California – Use these time-tested tips
Published by Apil Gupta on June 24th 2012 | Mortgage
Finding the best mortgage rate California is more often than not like locating a needle in a haystac...