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$4 FEE OPTIONS
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Take your cash to the Customer Service Desk at Wal-Mart, Kroger, HEB, ACE Cash Express, PLS, DolEx, or many more locations for only a $4 service fee.
Pay over the Phone with EFT E-check using your bank routing and checking account
DO NOT CALL AugustREI to make a phone payment.
When you use your credit card to pay your mortgage we call it paying debt with debt. However it is not an accepted standard of practice in the Lending industry. The restriction is not to create hardship for the Homeowner, it is simply a mortgage Lender and Consumer protection measure.
Your Mortgage Payment Will Change – It Will Not Stay the Same.
Property Taxes & Insurance costs are not a constant set amount. They will change. Either Up or Down. However an unexpected increase to our monthly mortgage payment can come as a bit of a shock to our budget. As A result it is good to make preparation early.
When you close on your home mortgage loan, you will have a regular payment. As A result the amount will show on your closing docs. You will make this same payment every month until there comes a month when your mortgage payment changes. Now, why does it do that?
The mortgage for your home is one part of your payment, but there are other expenses as well, such as the maintenance of an escrow account for the payment of insurance and property taxes.
Homeowners insurance cost does not change much from year to year unless you change your level of coverage. One of the biggest fluctuating expenses for homeowners comes in the form of property taxes. It is important to be aware that this is not a constant set amount.
How Much Will My Taxes and/or Insurance Go Up?
Your Servicer does not make this decision. Your Lender does not make this decision.
The County, City and Municipal government where you live and your insurance company makes the decision on how much they charge.
Here are the biggest reasons mortgage payments change.
PROPERTY TAXES AND/OR HOMEOWNERS INSURANCE PREMIUMS INCREASE
Property tax rates will change when home values increase. This impacts the amount you pay in taxes. If your monthly mortgage payment includes an amount you must pay into your escrow account, then your payment will go up if your property taxes or homeowners insurance premiums go up. You will get a notification of this change by mail and email through an annual Escrow Analysis.
ADJUSTABLE RATE MORTGAGE (ARM) AND THE INTEREST RATE CHANGES
Check the type of mortgage you have. Some homeowners believe that they have a fixed-rate mortgage loan, when their loan actually includes an adjustable-rate or some other feature that can cause their interest rate and payment to change.
INTEREST-ONLY/ PAY-OPTION LOAN AND YOU BEGIN TO PAY PRINCIPAL
With these loans, you can postpone making principal payments for a while. That means that for a period of time you are only paying off the interest that’s accumulating on the amount you borrowed to pay for your home. Eventually, you have to start paying principal, or the actual amount you owe on the home, and that will make the monthly payments go up.
YOU HAVE A DECREASE IN YOUR INTEREST RATE OR YOUR ESCROW PAYMENTS
Have you stopped paying for private mortgage insurance? If you have private mortgage insurance, your payments may change once you are able to and do cancel the insurance.
Your Loan Payment is DUE on the Day Listed in Your Note (Loan Contract)
In the mean time online, payment is credited as per FEDERAL Law the day the payment is received. For the most part we will only process Payments during business hours. Physical payments received after 5pm Friday. And on weekends, or these holidays: Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas (2 Days), or New Year’s Day , We can’t process the payment until the next business day and could be considered late.
10 Days Past your Due Date You will have to give Late Fee
Or on your late payment term date as stated in your loan documents.
The late fee (usually 5% or as stated in your loan documents) of your Principal & Interest payment is charged to your account. This can add up to a lot of extra money!
20 Days Past Your Due Date
You are in Breach of your Property Deed of Trust
Your Lender can choose to begin the foreclosure process 20 days after your due date.
IT IS CRITICAL TO MAKE YOUR PAYMENT + LATE FEE BEFORE YOUR NEXT DUE DATE
PLEASE BE AWARE:
As an Independent Lender in the State of Texas, your Lender is not obligated under federal law
to begin the foreclosure process at 90 days. The foreclosure process can begin 20 days after your due date.
31 Days Past Your Due Date
YOU ARE IN DEFAULT of your Deed of Trust contract with your Lender
Your Delinquency is Now Reported to the Credit Bureau
45 Days Past Your Due Date
Notice of Default with Intent To Accelerate Foreclosure (NOD)
If you have not made your Payment + Late Fee by the date stated in the Notification of Delinquency, your Lender may decide to begin the legal process of Notice of Default by Notifying you of the Intent to Accelerate Property Foreclosure by an Attorney. Based on the terms of your closing agreement, you will have 20-30 days to cure the default (to bring your account current). The Cost of the Default has now gone up:
$ YOU ARE NOW CHARGED THE DEFAULT AMOUNT OF:
$100-$350 NOD FEE + YOUR LATE PAYMENT + LATE FEE + THIS MONTHS’ PAYMENT
65-75 Days Past Your Due Date
The Default is Now a Legal Matter and an Attorney is Engaged
If your loan is not brought current (including late fees and charges) by the date stated in the Notice of Default with Intent to Accelerate Foreclosure (NOD) your lender may engage an attorney to go ahead with foreclosure. The Attorney is now your main point of contact.
$ YOU ARE NOW CHARGED:
$350-$1,000 ADDITIONAL LEGAL FEES + THE DEFAULT AMOUNT ABOVE
+ AN ADDITIONAL MONTH OF LATE FEES + THE THIRD MONTHS’ PAYMENT
YOUR LENDER IS RESPONSIBLE FOR MAKING DECISIONS ABOUT LATE FEES
AugustREI is unable to waive late fees without authorization from your Lender.
You may send a request to your Lender using the “Request to Lender Form”
If you are experiencing hardship, please communicate with us.
BorrowerServices@AugustREI.com | 972.767.9219
For a One-Time Payment to be Paid Toward Your Principal Balance:
For a Monthly or Regular Principal Payment You Plan to Make:
Call AugustREI at 972-767-9219. We will place a permanent flag on your account that any future extra payments you make, in addition to your regular monthly payment, is to be applied to your principal balance.
YOUR LENDER IS RESPONSIBLE FOR MAKING DECISIONS ABOUT LATE FEES
AugustREI is unable to waive late fees without authorization from your Lender.
You may submit a request to your Lender using the “Request to Lender Form”
Congratulations!
You are ready to make your last loan payment and pay off your home mortgage loan. Be sure to follow the steps below first.
If you are refinancing your loan, go to: HOW DO I REFINANCE MY LOAN?
Please be aware the Payoff to obtain the Release of Lien on your property is a legal process and can take 30-60 days. AugustREI DOES NOT process the Release of Lien, your local County Records office does.
Congratulations!
You have made your last loan payment!
Now, there are few additional steps you need to take to get the Release of Lien for your house.
What is a Release of Lien?
A Satisfaction of Mortgage, also known as a Mortgage Lien Release, is a legal document proving that the mortgage has been paid in full, all terms of the loan have been satisfied and there will no longer be a lien (claim) on the property. This means the borrower has completely repaid their loan to the Lender as agreed upon (inclusive of late fees or other required payments by the lender) and the Lender no longer has a claim to your property because you have paid off the debt.
Please be aware the Payoff to obtain the Release of Lien on your property is a legal process and can take 60-90 days. AugustREI, DOES NOT send you the Release of Lien, your local County Record’s Office does.
IF YOU HAVE NOT RECEIVED THE RELEASE OF LIEN
If it has been more than 90 Days since your final statement was paid in full, and you have not received the Release of Lien:
To ensure payments are being applied to both Lien Loans, the 1st & 2nd Lien should be paid separately.
Combining payments for both loans into one payment will not guarantee the 2nd Lien will be paid timely or accurately.
When a payment is received and applied to your account, you will receive a text message notifying you that it has been received. This text only confirms we received the payment,
IT DOES NOT MEAN THAT THE MONEY HAS BEEN CLEARED BY YOUR BANK
To Verify a Payment means that your bank confirms there is enough money in your bank account for the payment to be made. It could take your bank 2-4 business days to confirm that the funds are sufficient and the payment is cleared.
Nonsufficient Funds If we receive notice from your bank that there is not enough money in your bank (called Nonsufficient Funds or NSF), you will be notified by phone and email usually within 4-6 business days after you made your payment.
If you have given or entered incorrect bank account information when you made your payment, it will also come back from your bank as NSF – Unable to Locate Account.
$35 NSF FEE If an NSF occurs for either reason, there is a $35 Fee charged by the bank, which is then charged to your account. This fee will need to paid as well as the payment that was rejected by the bank.
After three NSF payments, your account is blocked from making future payments using your bank checking account.
Late Fee Charged If the NSF payment is not resubmitted within your Payment term due date, a late fee (usually 5%) of your Principal & Interest payment is also charged to your account and is now due. Refer to your loan documents for your exact late payment term and late fee amount.
When a payment is received and applied to your account, you will receive a text message notifying you that it has been received. This text only confirms we received the payment,
IT DOES NOT MEAN THAT THE MONEY HAS BEEN CLEARED BY YOUR BANK
To Verify a Payment means that your bank confirms there is enough money in your bank account for the payment to be made. It could take your bank 2-4 business days to confirm that the funds are sufficient and the payment is cleared.
Nonsufficient Funds If we receive notice from your bank that there is not enough money in your bank (called Nonsufficient Funds or NSF), you will be notified by phone and email usually within 4-6 business days after you made your payment.
If you have given or entered incorrect bank account information when you made your payment, it will also come back from your bank as NSF – Unable to Locate Account.
$35 NSF FEE If an NSF occurs for either reason, there is a $35 Fee charged by the bank, which is then charged to your account. This fee will need to paid as well as the payment that was rejected by the bank.
After three NSF payments, your account is blocked from making future payments using your bank checking account.
Late Fee Charged If the NSF payment is not resubmitted within your Payment term due date, a late fee (usually 5%) of your Principal & Interest payment is also charged to your account and is now due. Refer to your loan documents for your exact late payment term and late fee amount.
Escrow = Property Taxes + Insurance (T&I). Your Escrow Account pays for your yearly Property Taxes & Insurance.
Escrow is a legal arrangement by you and your Lender in which AugustREI, your Servicer, temporarily holds a portion of your payment in an non-interest bearing account. Your Servicer will use those funds to pay your Property Tax & Insurance payments for you, if contracted to do so.
Why do You Need an Escrow Account for Taxes and Insurance? An Escrow account protects you by making sure you have the money to pay for Taxes & Insurance (T&I) when the bills arrive. You don’t have to pay a lump sum to cover taxes and insurance since you’re paying smaller contributions throughout the year.
Your Mortgage Servicer makes sure these bills are paid on time. That way, you are not responsible for any late fees or a tax lien the tax authority could put on your home if your tax bills don’t get paid. If your homeowners insurance coverage lapses, significant damage to the home means you lose a lot of money.
YOU CANNOT USE YOUR ESCROW FUNDS TO MAKE A PAYMENT ON YOUR LOAN.
How Much Do I Have to Pay in Escrow?
Annual Escrow Analysis
Since Taxes and/or Insurance (T&I) can change year to year, your Servicer analyzes your Escrow account every year (usually in April or May) to make sure we are collecting enough money to cover your Taxes & Insurance. The Escrow Analysis is mailed and emailed to you.
First Year Tax & Insurance Payments
Insurance Premium: When you close on your house, the title company will pay your first year of Insurance premium, unless other arrangements have been made by you and your Lender. If such agreement has been made it is the responsibility of the Homeowner to ensure the insurance is paid and maintained for the first year. Proof of Insurance must be sent to AugustREI at Insurance@AugustREI.com.
Property Taxes: A portion of your closing costs are sent to your Servicer to pay for upcoming taxes due. This is only an estimated amount based on the previous years’ tax amount. If there is an increase in your tax rate during the first year, the Homeowner will be responsible to pay this additional amount.
Why do You Receive an Escrow Analysis Review Statement Every Year?
How Much Will My Taxes and/or Insurance Go Up?
Your Loan Payment is DUE on the Day Listed in Your Note (Loan Contract)
If payment is received online, the payment is credited as per FEDERAL Law the day the payment is received. Payments will ONLY be processed during business hours. Physical payments received after 5pm Friday, on weekends, or these holidays: Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas (2 Days), or New Year’s Day will not be processed until the next business day and could be considered late.
10 Days Past your Due Date a Late Fee is Charged
Or on your late payment term date as stated in your loan documents.
The late fee (usually 5% or as stated in your loan documents) of your Principal & Interest payment is charged to your account. This can add up to a lot of extra money!
20 Days Past Your Due Date
You are in Breach of your Property Deed of Trust
Your Lender can choose to begin the foreclosure process 20 days after your due date.
IT IS CRITICAL TO MAKE YOUR PAYMENT + LATE FEE BEFORE YOUR NEXT DUE DATE
PLEASE BE AWARE:
As an Independent Lender in the State of Texas, your Lender is not obligated under federal law
to begin the foreclosure process at 90 days. The foreclosure process can begin 20 days after your due date.
31 Days Past Your Due Date
YOU ARE IN DEFAULT of your Deed of Trust contract with your Lender
Your Delinquency is Now Reported to the Credit Bureau
45 Days Past Your Due Date
Notice of Default with Intent To Accelerate Foreclosure (NOD)
If you have not made your Payment + Late Fee by the date stated in the Notification of Delinquency, your Lender may decide to begin the legal process of Notice of Default by Notifying you of the Intent to Accelerate Property Foreclosure by an Attorney. Based on the terms of your closing agreement, you will have 20-30 days to cure the default (to bring your account current). The Cost of the Default has now gone up:
$$ YOU ARE NOW CHARGED THE DEFAULT AMOUNT OF:
$100-$350 NOD FEE + YOUR LATE PAYMENT + LATE FEE + THIS MONTHS’ PAYMENT
65-75 Days Past Your Due Date
The Default is Now a Legal Matter and an Attorney is Engaged
If your loan is not brought current (including late fees and charges) by the date stated in the Notice of Default with Intent to Accelerate Foreclosure (NOD) your lender may engage an attorney to go ahead with foreclosure. The Attorney is now your main point of contact.
$$ YOU ARE NOW CHARGED:
$350-$1,000 ADDITIONAL LEGAL FEES + THE DEFAULT AMOUNT ABOVE
+ AN ADDITIONAL MONTH OF LATE FEES + THE THIRD MONTHS’ PAYMENT
YOUR LENDER IS RESPONSIBLE FOR MAKING DECISIONS ABOUT LATE FEES
AugustREI is unable to waive late fees without authorization from your Lender.
You may send a request to your Lender using the “Request to Lender Form”
If you are experiencing hardship, please communicate with us.
BorrowerServices@AugustREI.com | 972.767.9219
How Much Will My Taxes and/or Insurance Go Up?
Your Escrow Analysis may show there has been an increase in your Property Taxes and/or Insurance. Because of this, it may show that there is an Escrow Shortage as well as an increase in your monthly payment.
What is an Escrow Shortage?
How Do You Calculate Your New Escrow Payment Amount?
This is Calculated by: FOR EXAMPLE
Taking your Principal & Interest (P&I) Payment Amount for the year, let’s say it is: $1,000/month
And your Escrow Account for Taxes & Insurance (T&I) last year was: + $300/month = $3,600/year
Plus your Property Tax increased $500 for last year and each year thereafter + $50/month = $500/year
(This is also the shortage amount we need to get back from you that was paid on your behalf)
Plus your Insurance Premium went up $120 for the coming year + $10/month = $120/year
Plus the $500 Escrow Shortage Amount that is divided by the next 12 months + $50/month = $500/year
= $1,410 New Monthly Payment
You cannot use your escrow funds to make a payment on your loan.
File for your Texas Homestead Exemption.
What is a Homestead Exemption? All Texas homeowners may receive a general residence homestead exemption on county and school taxes on the value of their property of up to 25% percent of a property’s appraised value.
Who Qualifies? These requirements must be met to receive the exemption:
How do I Apply for a Homestead Exemption? Contact your local County Tax Appraisal District or the Texas Comptroller Office at comptroller.texas.gov. You will need to fill out the application (available on their website) specific to your county appraisal district, then mail all of the requested documents to the appraisal district for your county.
County Tax Appraisal District Information Click the link below to find the Texas County Tax Appraisal District you live in. From there you can find the appraised value of your home, property tax information and How to apply for your Homestead Exemption.
If you have further questions after reviewing your county’s appraisal district website, please contact them directly at the number provided on their website.
Are Other Exemptions Available? If you are disabled, are 65 years of age or older, or a disabled veteran or spouse of a disabled veteran.
First Year Payment
Property Taxes: A portion of your closing costs are sent to your Servicer to pay for upcoming taxes due. This is only an estimated amount based on the previous years’ tax amount. If there is an increase in your tax rate during the first year, the Homeowner will be responsible to pay this additional amount.
What are Property Taxes?
How are Property Taxes Calculated?
What is a Homestead Exemption? All Texas homeowners may receive a general residence homestead exemption on county and school taxes on the value of their property of up to 25% percent of a property’s appraised value.
Who Qualifies? These requirements must be met to receive the exemption:
How do I Apply for a Homestead Exemption? Contact your local County Tax Appraisal District or the Texas Comptroller Office at comptroller.texas.gov. You will need to fill out the application (available on their website) specific to your county appraisal district, then mail all of the requested documents to the appraisal district for your county.
County Tax Appraisal District Information Click the link below to find the Texas County Tax Appraisal District you live in. From there you can find the appraised value of your home, property tax information and How to apply for your Homestead Exemption.
If you have further questions after reviewing your county’s appraisal district website, please contact them directly at the number provided on their website.
Are Other Exemptions Available? If you are disabled, are 65 years of age or older, or a disabled veteran or spouse of a disabled veteran.
What is Covered Under a Homeowner Property Insurance Policy?
How Much Does Insurance Cost?
If, for any reason, you discontinue your insurance, your Lender is allowed to buy it for you and charge you for it. This insurance may only cover the Lender, and not you, which means you won’t get paid for any losses. It is usually more expensive than buying it yourself.
If you cancel your insurance, Homeowner MUST use any insurance carrier reimbursement / refund as payment to satisfy any amount due on a new or revised policy.
First Year Payment
Insurance Premium: When you close on your house, the title company will pay your first year of Insurance premium, unless other arrangements have been made by you and your Lender. If such agreement has been made it is the responsibility of the Homeowner to ensure the insurance is paid and maintained for the first year. Proof of Insurance must be sent to AugustREI at Insurance@AugustREI.com.
To ensure escrow funds are available to pay policy, it is recommended Homeowner should only make changes or get a new policy at the time of the annual renewal period.
Homeowner MUST notify Servicer of these changes at least six (6) weeks before the policy renewal date. Servicer is not liable for payments made to previous carrier if not notified within this period.
Homeowner MUST use any insurance carrier reimbursement / refund as payment to satisfy any amount due on a new or revised policy.
1st STEP
Contact your insurance company to report the claim. DO NOT CONTACT AugustREI.
2nd STEP
When you receive the insurance claim check, Sign the Check and Mail it to AugustREI for your Lender’s Endorsement.
Send to: AugustREI, PO Box 496644 Garland TX 75049-6644
Also, Mail the following documents to AugustREI or Email them to Insurance@AugustREI.com:
3rd STEP
Contact the Contractor(s) to make the repairs.
Legitimate repair contractors will make the repairs without being paid up front. You will need to provide them the Insurance Company Claim #.
4th STEP
Email “After Repair” Pictures and the Repair Contractors Invoice to Insurance@AugustREI.com.
They must show the repairs are visibly completed. Once all documents and Before/After pictures are submitted AugustREI will disburse payment:
If the claims check amount is less than $5,000 and once you have sent AugustREI the required documentation, your Lender will endorse your claims payment check and mail it to you. This could take 1-2 weeks.
If the claims check amount more than $5,000 Your Lender has a financial interest in your property and will want to ensure the necessary repairs are made. Instead of endorsing the check and sending it back to you, your Lender has the option to put the money in a non-interest bearing escrow account and authorize payment for the repairs in stages as the work is completed. Payments will then be sent to the individual repair Contractor(s) directly once you have sent AugustREI the required documents in Step 4.
Congratulations!
You are ready to make your last loan payment and pay off your home mortgage loan. Be sure to follow the steps below first.
If you are refinancing your loan, go to: HOW DO I REFINANCE MY LOAN?
Please be aware the Payoff to obtain the Release of Lien on your property is a legal process and can take 30-60 days. AugustREI DOES NOT process the Release of Lien, your local County Records office does.
Congratulations!
You have made your last loan payment!
Now, there are few additional steps you need to take to get the Release of Lien for your house.
What is a Release of Lien?
A Satisfaction of Mortgage, also known as a Mortgage Lien Release .It is a legal document proving that the mortgage has been paid in full. In addition if you satisfy all terms of the loan there will no longer be a lien (claim) on the property. This means the borrower has completely repaid their loan to the Lender as agreed upon (inclusive of late fees or other required payments by the lender) and the Lender no longer has a claim to your property because you have paid off the debt.
Please be aware the Payoff to obtain the Release of Lien on your property is a legal process and can take 60-90 days. AugustREI, DOES NOT send you the Release of Lien, your local County Record’s Office does.
IF YOU HAVE NOT RECEIVED THE RELEASE OF LIEN
In conclusion if you has paid your full amount and if it has been more than 90 days since your final statement , and you have not received the Release of Lien:
Verification of Mortgage (VOM)
A verification of mortgage is documentation of your mortgage payment history. As a result using verification of mortgage is necessary to verify your existing balance and monthly payments, and to check for any late payments on the account. A verification of mortgage is one of the many documents needed to prove that you are capable of paying back the money loaned, and is provided by your current Lender/Servicer.
If a Third Party Requestor is requiring a Verification of Mortgage (VOM) on your account, you may direct them to complete and submit the “Request for Verification of Mortgage w Authorization Form” on the AugustREI website (Located under Homeowners – Forms).
Generally there is a charge of $35 from your account for Verification of Mortgage Fee for each new request.
AugustREI IS UNABLE TO PROVIDE A COMPLETED FORM TO THE HOMEOWNER/APPLICANT
It can only be sent to the Third Party Requesting the information.
What is Home Equity?
Can I Get a Loan Based on My Home Equity?
Refer to your loan closing docs to see if you qualify for a Home Equity Line of Credit.
AugustREI is only your Loan Servicer. We are not a bank or a Lender and cannot assist you with refinancing your home.
You can contact your current Lender or another financial institution to assist you.
If you qualify to refinance your loan, the new Lender will be responsible for submitting your Payoff request.
The Interest daily rate is usually calculated on a 360 or 365 day calendar 30-Day Basis (or as per your Mortgage Note.)
This is so that the same amount of interest is paid every month, despite the day of the month your payment is paid.
AS a result mortgage payments structure help you so that can pay the interest sooner, with the bulk of mortgage payments in the first half of your mortgage term going toward interest. As the loan amortizes (by reducing the debt with regular payments), more of the mortgage payment goes toward the principal and less toward its interest.
AugustREI is only your Loan Servicer. We are not a bank or a Lender and cannot assist you with refinancing your home.
You can contact your current Lender or another financial institution to assist you.
If you qualify to refinance your loan, the new Lender will be responsible for submitting your Payoff request.