Finding Your Mortgage Number: A Simple Guide To Locating It

If you're looking to find out who holds your mortgage, there are a few things you should know. The lender is the financial institution that loaned you the money and is also known as the note holder or holder. However, lenders often sell mortgage debt to other entities, which then become the new loan owners. If your mortgage is sold or the servicing rights change, you are legally required to be notified in writing. If you're facing foreclosure or struggling to make payments, a local foreclosure lawyer or HUD-approved housing counsellor can advise you on your options. It's also a good idea to check your credit report frequently and ensure your lender is reporting your mortgage payments correctly.

How to find your mortgage number

How to find out who holds your mortgage

It's not always easy to find out what company or entity owns (holds), backs (guarantees), or services your mortgage loan. The "lender" is the financial institution that loaned you the money, and is also called the "note holder" or simply the "holder". The lender might sell the mortgage debt to another entity, which then becomes the new loan owner (holder). Loans are frequently bought and sold in the mortgage industry.

The first step in determining who owns or backs your mortgage is to identify your loan servicer. The servicer might be the same company as the loan holder, but not always. To find out who your loan servicer is, check your monthly mortgage billing statement or your payment coupon book. If you have a Mortgage Electronic Registration System (MERS) loan, call the MERS Servicer Identification System toll-free at 888-679-6377 or visit the MERS website. Your mortgage servicer's identity will be listed in the MERS system if you have a MERS loan. If you're unsure whether you have a MERS loan, you can also get this information from the MERS website.

Once you know who your servicer is, you can call them and ask who holds your loan. You can also look up who owns your mortgage online, or send a written request to your servicer. You can send a Qualified Written Request or a Request for Information. Your servicer is obligated to provide you, to the best of their knowledge, with the name, address, and telephone number of the owner of your loan. Many mortgages are owned by Fannie Mae and Freddie Mac, both of which offer a mortgage lookup tool on their websites. You can also check the Fannie Mae and Freddie Mac loan lookup tools to see if they own your loan.

If you're having trouble making your monthly payments, a local foreclosure lawyer can advise you about what mortgage relief is available in your circumstances, help you deal with your loan servicer, and represent you in a foreclosure, if necessary. A HUD-approved housing counsellor is also a good resource for information (at no cost) about different loss mitigation options and mortgage information.

What to do if you're facing foreclosure

If you're facing foreclosure, there are several strategies you can employ to delay or even stop the process. Here are some steps you can take:

Understand Your Rights and Options:

Research and understand the foreclosure laws and timeframes specific to your state, as they vary across the country. Contact your State Government Housing Office for this information. Additionally, learn about foreclosure prevention options, also known as loss mitigation, by reviewing your loan documents and seeking free or low-cost housing counselling services from the U.S. Department of Housing and Urban Development (HUD). A HUD-approved housing counsellor can help you understand your legal options, organise your finances, and even represent you in negotiations with your lender.

Communicate with Your Lender:

If you're facing financial difficulties, don't hesitate to communicate with your lender. They may be willing to work with you to find a solution, such as a loan modification or a short sale. You can also explore mortgage relief options with the help of a local foreclosure lawyer or a HUD-approved housing counsellor.

File for Bankruptcy or Take Legal Action:

In some cases, filing for bankruptcy can help delay or stop foreclosure proceedings. Additionally, if you believe the foreclosing party doesn't actually own your loan, you may have a legal defence. Consult an attorney to review your options and determine if you have a case to argue in court.

Explore Government Assistance Programs:

Take advantage of government assistance programs designed to help homeowners avoid foreclosure. For example, the Making Home Affordable Program® (MHA) and the Home Affordable Modification Program (HAMP) have helped over 1.8 million families obtain mortgage relief. The Hardest Hit Fund® (HHF) also provides targeted aid to families in states severely affected by the economic and housing market downturn.

Postpone the Foreclosure Sale:

If a foreclosure sale is imminent, consider asking the servicer to postpone it. While they usually won't agree, it doesn't hurt to ask. You can also explore options like applying for a loan modification or other foreclosure avoidance alternatives to delay the process. Additionally, in certain states like California, Colorado, Nevada, and Minnesota, there are laws prohibiting the dual-tracking of foreclosures, which means the bank cannot proceed with foreclosure while a loss mitigation application is pending.

Remember, taking quick and proactive measures can improve your chances of delaying or avoiding foreclosure. Don't ignore notices and seek professional advice as soon as possible.

How loan modifications can affect your credit score

Loan modifications can affect your credit score in several ways, both positively and negatively, depending on your specific circumstances. Here are some key points to consider:

Short-Term Impact

Loan modifications are typically pursued when a borrower is facing financial difficulties and is unable to make their loan payments as agreed. This process usually involves missed payments while negotiations are ongoing, which can significantly impact your credit score in the short term. Additionally, if you haven't missed any payments yet, even missing one payment during this period can damage your credit score.

Reported as a Settlement

Since loan modifications involve changing the terms of your loan, some lenders may report the modification to credit bureaus (such as Experian, TransUnion, and Equifax) as a settlement. This can have a substantial negative impact on your credit score and remain on your credit report for several years. However, some lenders may not report it as a settlement, so your credit score remains unaffected.

Avoiding Foreclosure

While there is a risk of a short-term negative impact on your credit score, modifying your loan terms can help you avoid foreclosure. Foreclosure occurs when you default on your loan agreement, and it can have a much more severe and long-lasting negative effect on your credit score. Therefore, loan modifications can be a way to mitigate more severe damage to your creditworthiness.

Long-Term Positives

Over time, if you consistently make your modified loan payments on time and maintain good financial practices, you can improve your credit score. Lenders view timely payments positively, and keeping to the new payment schedule can enhance your financial stability and creditworthiness. Additionally, a loan modification can make it easier for you to manage your other debt obligations, further contributing to improving your credit score.

Credit Report Accuracy

It is essential to regularly check your credit report for accuracy. Ensure that your lender reports your mortgage payments correctly and disputes any errors with the credit bureau. Under the Fair Credit Reporting Act, bureaus are required to investigate disputes promptly and delete incorrect information.

In summary, while loan modifications may carry some risks to your credit score in the short term, they can also provide a path to improving your financial situation and enhancing your creditworthiness over the long term. It is always advisable to consult with a financial professional or credit counsellor to understand your specific circumstances better and make informed decisions.

How to check if Freddie Mac owns your loan

It's important to know who owns your loan to understand the options available for mortgage assistance. Freddie Mac owns about 62% of outstanding home mortgages in the United States, so it's not uncommon for them to own your loan.

There are a few ways to check if Freddie Mac owns your loan. Firstly, you may have received a letter stating that Freddie Mac has purchased your loan. This is because they are required by law to inform you. If you receive such a letter, check that the balance is correct. If there is a discrepancy, contact your servicer (the company to which you send your mortgage payments). If the balance is correct, you can keep the letter for your records.

You can also use Freddie Mac's free online loan lookup tool. To use this tool, you will need to fill out a short form with your name, the last four digits of your social security number, and your property address. They will then notify you immediately if they own your loan or not. It's important to enter your information carefully, as a small mistake could cause an inaccurate result.

If you are having difficulty paying your mortgage on time, your lender or mortgage servicer should be your first point of contact for assistance. Their contact information should be listed on your monthly statement.

What to do if your mortgage is sold to a new owner

It can be surprising to learn that your mortgage lender has sold your loan to another company or investor, but it is a common practice in the mortgage industry. The good news is that a transfer or sale of your mortgage loan should not affect you financially. The terms of your loan, including the interest rate, monthly payment, and outstanding balance, will remain the same.

Stay informed

As a homeowner, you have rights under the Real Estate Settlement Procedures Act (RESPA) that require your current and new servicers to provide you with notices and information about the transfer. Federal law dictates that you must receive a notice about the change at least 15 days before the switch. Then, within 30 days of the sale, the new mortgage owner must send you its name, address, and contact number. Read the notice carefully and look out for any mention of the mortgage servicer changing.

Double-check effective dates

Know when the old payments should stop and the new ones should start. There is a 60-day grace period after servicing rights have been sold, so you have some time to adjust to the transition. During this time, you won't be charged a late fee if you mistakenly send your payment to the old servicer.

Keep receipts and confirmations

Keep copies of statements from the months surrounding the sale and transfer to the new owner. Hold on to documentation and confirmations of payments to prove that you submitted them on time in case of any confusion.

Don't be afraid to reach out

If anything is unclear, contact the new servicer, whose information should be provided on the notice. If you have any questions about your loan, direct them to your servicer.

Update payment information

If you have automatic payments set up, confirm that these will continue with the new servicer. If you send payments automatically from your bank account, update the payment information with the new servicer's details. If you mail payment checks, verify the new address and account number.

Check with MERS

If your mortgage has been securitized, you can check the Mortgage Electronic Registration Systems (MERS) website or call them at 1-888-679-6377. MERS is a tracking system for mortgages and mortgage servicers, and it can provide information on loan servicing and ownership changes.

Remember, mortgages are frequently bought and sold, and while you may not have been able to prevent the sale, your loan terms will not change, and you are protected by federal laws that ensure you receive proper notices and have time to adjust.

Frequently asked questions