Many people making payments on mortgages and other types of loans look for someone to collect and hold a monthly sum to be used to pay their taxes and/or insurance when they come due. This demand has risen for two reasons. First, many borrowers find that they can manage their budgets better if they can pay in installments by having a small amount added to their monthly mortgage payment. That's often easier than coming up with a large amount for taxes or insurance every six months or so. Second, many lenders recommend or even insist on these reserve accounts as a condition of the loan, but are not willing or equipped to handle them themselves.

If you would like to pay towards your taxes and/or insurance along with your monthly loan payments, then an AFTS Contract Services Reserve Account may be for you.

A Reserve Account is simple and convenient. It allows you to pay your loan and set aside taxes and/or insurance at the same time by writing a single check each month. Or, an optional Automatic Payment plan is available. With the Automatic Payment Plan, the funds for your loan and reserve payments are electronically deducted from your bank account and credited towards your loan and reserve payments. Once paid, your reserve funds are safely set aside, out of reach, until the tax and/or insurance bill is due.

As a Reserve Account client, you are assigned an account number and provided with a book of payment coupons and mailing labels. You then make a single payment to us each month. This payment is the total of your regular monthly loan payment, the monthly amount to be reserved for future taxes and/or insurance and the monthly fee for our services.

The principal and interest of your loan payment is passed along to your lender as usual and credited against your outstanding loan amount. The reserve portion of the payment is held by us until the annual or semi-annual tax and/or insurance payments are due, at which time we make the payment on your behalf.

Please consider how a Reserve Account can help you meet your financial obligations and maintain your personal budget at the same time. If you would like to enroll, or if you need additional information, click here to email or call us at 800-275-2033.