Mortgages and Escrow – Why does my insurance agent need to be involved when my mortgage company changes?
Mortgages and Escrow – Why does my insurance agent need to be involved when my mortgage company changes?
It is a very common practice for your mortgage company to sell or change your mortgage after closing. If your mortgage is sold or changed you should not worry, but you should verify several items.:
- The name and address of your new mortgage company
- Confirm the payment amount did not change
- If you had taxes or insurance set up to escrow through your mortgage, confirm that those did not change
- Confirm the new payment address and make any adjustments to auto draft that may be needed
- Make note of your new loan number
If your home insurance premium is taken out of your mortgage payment and placed in an escrow account, Hilton Head Insurance and Brokerage needs to make sure that the new mortgage company is listed correctly on your insurance policy. This is important because at the time your insurance renews, the invoice will need to go to the correct mortgage company and reference the correct loan number for prompt payment of your home insurance policy. Many times when the mortgage is sold the insurance agent is not notified and the insurance renewal goes to the wrong mortgage company. If the invoice for payment goes to the incorrect mortgage company, then it is possible for your policy to cancel for non-payment. That is certainly something we want to avoid.
If your mortgage company changes and your insurance policy is escrowed:
- Note the new mortgage company name and loan number
- Contact Hilton Head Insurance and Brokerage and share that information with us so we can update your policy:
- By phone 843-252-0840
- By the contact form on our website https://hiltonheadinsuranceandbrokerage.com/contact/
