Usually your previous mortgage servicer will make sure everything is taken care of prior to the transfer, but, it is in your best interest to check on all details. It is best to ask questions at the time of the transfer to make sure everything is handled before your previous mortgage servicer purges your records from its files. It is much more difficult to get information from an institution that has not handled your loan for the last six months. If you have questions regarding your specific transfer, it is always best to contact your new mortgage servicer in writing. At times of servicing transfers, most mortgage servicers are flooded with phone calls, so, you may get faster and clearer information through the mail.
Make sure to check in on the following:
- Always keep your mortgage servicer informed of any changes in your address and phone number. Provide this information in writing and forward it to the address indicated in your welcome letter. This address is usually different from the one that you would send payments.
- When your servicing is transferred, make sure you receive both a goodbye letter and a welcome letter. If you don’t receive both letters, call your previous mortgage servicer to verify the transfer.
- When you receive the letters, read them carefully making note of the new mortgage servicer’s name, address, phone number, contact name and payment information.
- When making your payments after your mortgage servicing has been transferred, follow the instructions in the welcome letter.
- Make sure that your insurance companies (homeowners, flood/hazard, life/disability) and your tax authority have been notified of the servicing transfer.
- Find out which company will be reporting on your interest paid for income tax purposes.