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Given the state of the Mortgage Industry…

December 3, 2007

Although I’ve said previously, and statistics support, that our area has only been slightly impacted by the mortgage “meltdown” with the subprime problem of the last year, there are issues about which every mortgage holder should be vigilant. When a mortgage company goes out of business or declares bankruptcy, their assets can be frozen.  That means that they cannot transfer funds and if you have asked your mortgage company to pay insurance or taxes on your behalf through escrow, they may be unable to do so.   

Following the practices below, should help you avoid problems related to mortgage issues:

1.  Track the status of your homeowners’ insurance policy to ensure it is being paid.  With your policy number in hand, call or go online to access your account information and make sure all is up-to-date.  If you have any doubt that the policy will be paid on time, pay it yourself and then seek reimbursement from the mortgage company.  This is one policy you don’t want to have lapse!

2.  Contact your local township or municipality to ensure the real estate taxes are being paid.  If these bills are not paid on time, you (not your mortgage company) will be assessed penalty fees, so this is well worth a phone call.

3.  If your mortgage is sold to another company (very common in the industry), you will receive a letter advising you of the change.  Verify that the principal and interest amounts are the same as with the original issuer.  The sooner any adjustments are made, the easier it will be to correct mistakes. 

Hopefully, you will have no problems with your mortgage, but a few steps will help ensure you have safeguarded yourself. If you have concerns or questions, please don’t hesitate to contact me. 

Patty Cunningham, ePro, SRES, ABR, AHS
Coldwell Banker Preferred
office: 610-429-4400
direct: 484-881-6051
cell:    610-659-4669


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