Real Estate Home Mortgages/Legality of being switched over
Ever since we got a mortgage 8 years ago, we have been switched over to 3 different mortgage companies. I was wondering about the legality of this practice as it seems we have no choice but just get rolled over sometimes even after just a year of sticking to one company. This last switch has been a hassle with my treasure's office stating they haven't received taxes from my mortgage company. I wished we could bypass the mortgage company and pay taxes on our own so to avoid mess ups such as this!
If you go over your copy of the loan documments you signed 8 years ago, you will notice that one of them is entitled "Transfer Disclosure". It advises you that your lender may transfer the loan to another banking entity. Lenders view mortgages just like any other product - they buy them and they sell them if they can obtain the right price.
As for paying the property tax yourself, you may petition your current lender to cancel the escrow account once you can document that your equity in the property exceeds 20%. There are two instances where this could be the case:
1. You've paid down the mortgage to a point where it is now 80% or less of the value of your home.
2. You haven't paid down the mortgage, but due to rising real estate values, you now have more than 20% equity. Remember that 'equity' is the difference between the value of the home and the balance of your mortgage.
If it is #2 that you want to use in your petition to the current lender, be prepared to be asked to provide an appraisal of the property.
All the best,
About Real Estate Home Mortgages
This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here