What is Contract Servicing?
We are an independent third party agent that receives and disburses payments on contracts and deeds of trust between two parties.
Contract servicing includes accepting payments from buyers, disbursing those payments to the seller, providing account history and year-end interest figures both to the parties and to the IRS at the end of the year. Typical services include providing payment coupons and receipts to buyers, payment notifications to the sellers, and providing accurate pay-off quotes to either side. A completed Contract Collections Escrow Agreement is required to open an account to be serviced by Stevens County Title.
What is a Reserve Account?
Borrowers may be required to fund an reserve account, along with their mortgage principal and interest payment, out of which the contract servicing company pays property taxes, property insurance, mortgage insurance (if required) and other essential expenses. Without an escrow account, a borrower who fails to maintain insurance and pay taxes on the home may lose the property that secures the loan.
Having your taxes and insurance included in your mortgage payment is actually very convenient. Instead of having to pay an annual insurance premium and half of your annual taxes on April 30th and the second half on October 31st out of pocket, the servicer establishes an automatic savings plan for you and pays the payments when they are due.
The amount of reserves required varies and can changes annually, depending on the amount of the annual taxes and annual insurance premium, this in turn, will change your monthly payment amount. (Can also be referred to as impounds or escrow account)
Contact The Contract Servicing Department
For additional information or questions please contact our Contract Servicing Department at 509-684-4589 or toll free at 877-684-4589.