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LESSON 25: MORTGAGE SERVICING
(continued from previous page)
Over the course of your loan
term, the right to service your loan may be sold more than once.
Companies change business plans, decide to get out of servicing
and sell off their portfolios all the time.
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Here's what should happen in that case and
what to watch out for:
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You must be officially
notified in writing of the change by both your original servicer
and the new servicer. |
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You should receive complete
details about the process, including the date the transfer takes
effect and the name, address and toll-free number of the new
servicer. |
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The new servicer must
honor any terms or conditions of your original mortgage contract,
other than those directly related to servicing the loan.
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There is a 60-day grace
period during the transfer. You cannot be charged a late
fee if you mistakenly send the mortgage payment to the old servicer
during that time. |
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Put any questions or disputes you
have with the new servicer in writing. Continue to make payments
while you settle the dispute. Otherwise, you might run the risk
of being considered in default.
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Federal law requires the servicer
to investigate and make any necessary corrections within 60
business days. |
After your mortgage servicer
has changed, look carefully at your mortgage statements.
Watch for any mistakes. Make sure the taxes and insurance
premiums have been paid on time. And, of course, keep any
letters, canceled checks or other documents relating to
your mortgage and payments so that you have the paperwork
to back you up in case of any dispute.
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