Mortgage Help   Mortgage Rates Real Estate Credit Foreclosure Tax Mortgage Rates  Mortgage Basics Chapter 1: How much house can you afford? Homeownership Should You Buy or Rent Summary   Chapter 2: Adjustable-rate mortgages ARM and a fixed-rate mortgage Fixed-rate mortgages Understanding the key elements Which type of lender is right for you? Other types of mortgages Subprime Summary   Chapter 3: Your credit score Down Payment How lenders set rates Low down payments Mortgage insurance Your mortgage payment Mortgage Points Summary   Chapter 4: The good faith estimate Inspection and Insurance Necessary paperwork for a buyer Other lender paperwork Paperwork and fees Prequalification and preapproval Special circumstances Summary   Chapter 5: Ten questions to ask Turned down for a mortgage Underwriting What lenders ask Summary   Chapter 6:  Understanding the closing process Escrow Summary   Chapter 7: When your mortgage is sold Avoiding foreclosure Paying ahead Payment changes Refinancing Removing mortgage insurance Summary After closing: When your mortgage is sold Your lender is required to inform you of any plans to sell your mortgage to a mortgage servicer after closing. The new servicer could be another bank, another lender, an investor or a third-party processing company that services mortgages. You could have several mortgage servicers over the life of your mortgage. The mortgage servicer collects and processes your monthly mortgage payments. They then forward your payment to the investor that owns your mortgage. The servicer will act on the investor's behalf should there be any problems with the mortgage. The servicer pays your property taxes and homeowners' insurance premiums from your escrow account. You will receive an annual mortgage statement that breaks down what portion of your mortgage payments were applied to principal, interest, taxes and insurance. It will also make adjustments to your escrow payments in order to cover any changes in taxes or insurance premiums. The servicer will counsel and assist you in overcoming delinquencies due to missed loan payments. A forbearance or deferral of payments may be extended to help you in times of financial difficulties. If the loan becomes seriously in default, the servicer may foreclose on the property in order to protect the investor's interest in the property and salvage the equity in the home. If your mortgage servicer is changed you will be notified in writing of the changes by both your original servicer and the new servicer. Pay attention to the transfer date and contact information for the new servicer. The new servicer is required to stand by the terms and conditions of your original mortgage agreement. You must be notified if there are any changes to the terms of your homeowners' insurance. During the transfer of servicers, there is a 60-day grace period in which you cannot be charged a late payment. This protects you from mistakenly sending a mortgage payment to your old servicer. You should put any questions or disputes with the new servicer in writing and continue to make all payments while you settle the dispute. Federal law requires the servicer to investigate and make corrections within 60 business days. If your mortgage servicer has changed, you should carefully examine your mortgage statements and make sure that all payments have been recorded. You should also check to see that your taxes and insurance premiums have been paid on time. Keep copies of any letters, canceled checks and other paperwork relating to your mortgage in case you have a dispute.