What Is a Mortgage Holder?
When you buy a house and take on a mortgage loan, you're given the privilege of using the property but you do not own the house yet. It's important to know every party involved in the transaction from the seller to the lender or broker who closes the loan. You should also identify the mortgage holder when examining the details of your mortgage loan.
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Mortgage Holder
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A mortgage holder, also sometimes called a note holder, is the entity that lays claim to the mortgage on the house. A mortgage is a lien on the house that identifies the true owner of the property until the debt is repaid. When all parties close a loan, the lender goes on record with the county as the mortgage holder. However, the lender does not always remain the note holder---it may sell the loan to a private investor. Once you pay off your mortgage loan balance, the mortgage holder loses claim over the house and you become the full owner.
Mortgage Servicer
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It's important not to confuse the mortgage holder with the servicer. The servicing company is not always equivalent to the person, bank or company that holds the mortgage. The servicer accepts payments and manages the loan on behalf of the mortgage holder for a fee. It's common for a large mortgage holding company to hire a servicer to manage all of their accounts.
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Call the Servicer
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If your mortgage holder is different from the servicing company, you may have to do a little digging to find out the name and information for the holder. The simplest way to find out this information is to simply call the servicing company (the company to which you send your mortgage payments every month) and ask. If you have trouble getting this information, you can hire a debt lawyer to contact the servicer on your behalf. Keep in mind that it's sometimes difficult to find out the mortgage holder if many different companies own the loan.
MERS Check
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You can also run a check of the MERS Servicer Identification System to see if the mortgage holder is listed. You need a mortgage identification number (MIN), which is listed on your mortgage agreement or full property address and borrower information. You can also check using an FHA (Federal Housing Administration), VA (Veteran's Administration) or Mortgage Insurance certificate number.
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