First off, i work for a mortgage company and i know how they work and i am tired of having people call in because they were stupid thinking they could mortgage at 250k home for less than they can a car... That just screams retarded.
1. Stay away from "option arm" loans. If you can't afford it, don't buy it. Don't be so proud to think you could never live in a 70 or 80 thousand dollar home. Don't go for the showcase home in the nice little subdivision just because it would "look good" on you. Please. How pathetic and shallow. All we think when we answer the phone and hear you complain about your bills being so high and the payment going up is "dude, just for a pretty house???"
Option arm loans, all you are doing is sigging your grave. The minimum payment isn't even all the interest you are accruing each month so your principal keeps going up, not down. The interest rates change monthly as do the interest only payment and the fully amortized payment so stay on top of your payments every month. It is after all your responsibility not the person you get on the phone to complain to that is the current holder of the loan.
2. Get set up on a autopay plan through the current loan holder that way your payment is on time, the mortgage servicer has record of attempt of payment in case any investigations need to be made, and it doesn't get lost by the post office. The mortgage servicer is not responsible to get the payment in on time, YOU ARE and if the postal service takes 3 weeks from when you dropped it in the mailbox to when the servicer gets it (and i know that they are all processed the day they are received, and 99% of the time it is all by a machine, from opening the envelope to taking whatever is in the envelope out to scanning the check for payment to posting it to the account... ALL DONE BY A ROBOT MACHINE!!! No person is actually handling your check!) don't set it up automatically thru your bank or credit union. The mortgage servicer can't trace that if there needs to be an investigation as to what happened to the payment. Plus, most of the time, your financial institution just mails us a check anyway which could get lost in the mail. And if you are assessed a late fee, you agreed to the assessment and the amount of that fee at the closing of your loan, you signed a document regarding that issue. It is not the fault of the loan servicer, they didn't set up that fee. They are just enforcing it.
3. If you have escrow on your account, that may change every year how much it is due to increase of taxes and or insurance or both.
Again, this is not the fault of the loan servicing company. We have nothing to do with it. Call your county or your insurance agent, don't call us and complain we can't do anything about it. Sometimes, we are not given enough as a starting amount for the escrow which will make you fall short later on, this is done at closing of the loan. Your broker needs to be contacted in this case to explain and or rectify this issue; what the loan servicing company receives, they receive. No more no less. And if it ends up to not be enough to pay the taxes and or insurance and the company covers it for you so you don't lose the home to foreclosure due to non payment of a bill, YOU ARE RESPONSIBILE to pay that company back what it paid for you PLUS an additional amount to cover for the coming year as well to make sure there is enough going forward to make up for what was lacking before.
I hope this clears up some stuff for people cuz i have found that the majority of people just are oblivious to reality. Or they were misinformed in the first place. Mortgage servicing companies (which by the way are just companies who buy loans and process the monthly payment and the escrow account disbursements, if any) don't want to deal with foreclosure it's too expensive so if by educating their customers they can avoid it they prefer it. Just please, before getting that loan, make sure you can still afford that perfect yard and two car garage on just one salary if need be. You never know what will happen...
0 comments