Mortgage Servicers hold the key to Keep Your Home CaliforniaPosted: September 20, 2011
When you bought the home, you were probably more concerned about the down payment, points and how long the escrow would take, not to mention the monthly payments.
So, some of the finer details, such as the difference between the lender and mortgage servicer, were likely overlooked – and possibly still today. But Keep Your Home California’s success – and your own, if you’re seeking mortgage assistance – depends on participation from mortgage servicers.
Many homeowners believe that the mortgage lender holds and services their loan until it’s paid off or they sell the house. Well, that doesn’t happen very often. In fact, loans and the right to service them are often bought and sold, sometimes several times during the life of a mortgage. So, the company that collects the mortgage payments likely doesn’t own the loan.
These so-called mortgage servicers handle the day-to-day management of mortgages, including collecting and crediting payments. Homeowners with questions about their mortgage call the servicer – not the actual mortgage lender.
And mortgage servicers play a major role in Keep Your Home California. Only homeowners with participating mortgage servicers can get help through the almost $2 billion, state-run program. Click here for a complete list of mortgage servicers and their participation in Keep Your HomeCalifornia.
Currently, the program has about 90 mortgage servicers, from big-name players Bank of America and Wells Fargo to smaller financial institutions such as Point Loma Credit Union and Santa Barbara Bank & Trust.
This collection of servicers has a big impact on California homeowners – servicing about 85 percent of the mortgages held in our state. And Keep Your Home California, which officially launched in February 2011, continues to attract more mortgage servicers.
So, if your mortgage servicer is not listed, don’t be discouraged, they could join Keep Your Home California in the future. It’s best to check the list of participating servicers every several days, since it’s updated frequently. You also could contact the mortgage servicer and ask if they plan to participate.
If you would like more information about participating mortgage servicers and Keep Your Home California, call 888-954-5337.