Know Your Mortgage Rights

12218119_sThe first step on the path to homeownership is deciding which mortgage company to work with. With so many lenders and loan options, it’s important to research each contender thoroughly before borrowing.

Consider selecting a lender that abides by these deadlines:

1. The lender credits on time. The lender must credit the payment the day it is received. In addition, make sure you are set up with periodic billing statements that indicate not only the payment due, but the balance on your loan and the escrow balance.

2. The lender contacts you on time. If you default on your mortgage, the lender is required to contact you no more than 36 days after the missed payment. They must also provide you with loss mitigation options in writing by the 45th day of delinquency.

3. The lender evaluates on time. Your modification application must be reviewed within 30 days. If the application is incomplete, the lender must inform and advise as to the best course of action.

4. The lender processes on time. If your home faces foreclosure, the lender cannot begin or complete that process during a loss evaluation (unless you’ve submitted an application 37 days prior to the scheduled foreclosure.)

5. The lender informs on time. If your lender thinks you did not keep your homeowners insurance, the lender must send you two notices before charging for force-placed insurance. If you send evidence to the contrary, your lender must cancel the insurance within 15 days of receiving it.

Source: Bankrate

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