An escrow account holds funds paid by you, the homeowner, that will eventually pay certain property related expenses. This includes, but is not limited to, taxes and/or homeowners’ insurance premiums.
An escrow account helps ensure property expenses are paid, so it’s part of your regular payment amount. As taxes and other expenses can change, so can escrow. So, learn more about how escrow works. Visit our Understanding Escrow page in the Mortgage Topics in Depth section of the website for more information about your escrow account and what it does.
The transfer of your mortgage servicing to us doesn’t change the original terms or conditions of your mortgage. It just changes the party responsible for collecting your payment, which is now ditech.
Your previous servicer will transfer any remaining escrow balance to us, to cover your property taxes and insurance. We’ll conduct your next escrow analysis on the same schedule as your prior servicer. An escrow analysis is typically conducted annually.
Yes, many homeowners request an escrow account with ditech. An escrow account is an account we set up to pay certain bills associated with your property, such as property taxes, homeowners insurance, hazard/flood insurance or private mortgage insurance, if required.
That way, you don’t need to save for these expenses or keep track of due dates. We make these payments for you on time, as needed, from your escrow account.
Because factors can change, ditech is required to review your estimated escrow obligations annually. We adjust your payment amount to reflect any increase or decrease in the escrow amount that will be needed to completely pay your insurance and property taxes in the coming 12 months, and cover the minimum balance requirement throughout the year. We send you a notice of these changes in an Annual Escrow Account Disclosure Statement.
Click here to learn more about escrow and why it could cause your payment to increase.
If you want to cancel your ditech escrow account, send a written request with your signature indicating that you wish your escrow account for taxes and/or insurance to be reviewed for cancellation.
For more information about how to submit a written homeowner request, visit the Contact Us page.
If you don’t currently have an escrow account with ditech and would like to establish one, please download and complete the Request to Establish an Escrow Account form.
When you have completed the ditech escrow request form, please fax it to the number printed on the form.