Knowing who holds your mortgage is important. If you ever have questions or need help because you are about to fall behind on your payments, you need to know who to contact. Finding out who holds your loan isn’t always the easiest process though. It’s not always the lender that you used when you originated and closed the loan. Your loan could have been sold several times. You are supposed to be made aware of the sale, but sometimes things get overlooked.
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If this happened to you, use the following steps to find out who has your mortgage now.
The Difference Between a Mortgage Holder and Loan Servicer
There’s one trick – your loan might be held by one company, but serviced by another. Many banks sell their servicing to other companies. The company servicing your loan doesn’t necessarily own it. They collect the payments and handle the communication with you, but that’s about it.
The mortgage holder actually owns your loan. They are the bank that can take action against you if you stop making your payments. They are also the bank that can help you if you fall behind and need a loan modification or payment arrangement.
Finding Out Who Services Your Loan
First, you may want to know who services your loan. After all, this is who you send your payments to on a regular basis. They also handle your escrow account and may play a role in the foreclosure process, should it ever get to that.
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Finding out who services your loan could be as easy as reading your mortgage statement. If you don’t have a statement, but have a coupon book, look at the front of that book, as that will tell you who services your loan. If your loan servicing was transferred throughout the term, read the latest letter sent to you regarding the transfer.
If you don’t have any of the above, you can contact MERS, or the Mortgage ElectronicRegistration System. Every time your loan is transferred, an electronic document is created and recorded. MERS keeps track of these documents. You can visit them
here.
Finding Out Who Holds Your Mortgage
If you are unaware of who actually owns your loan, you can take the following steps:
- Call your loan servicer – This is the easiest way to find out who owns your loan. If you took the above steps to find out who services your loan, you can call them and they can point you in the right direction. They should have the most up-to-date information for you.
- Write to your loan servicer – You can also send a written request to your loan servicer to find out who holds your loan.
- Check with MERS – Just as you could check with MERS to see who services your loan, you could check with them to see who owns it as well.
Knowing who owns your mortgage is important no matter your situation at the time. Even if everything is just fine with your finances and you can afford to pay your loan, you should still check in to make sure you know who owns it from time to time. This way when you do want to sell your home and pay off the loan or if you have any other issues with it, you’ll know who to contact.
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