Why is my original mortgage account still active after home conversion? – IjaraCDC

Applies to: United States.

Ijara describes home conversion as restructuring the existing transaction rather than refinancing it. The bank remains the investor, while Ijara manages payment collection and processing. Your original mortgage account may therefore remain active; conversion alone does not confirm that it has been paid off or closed.

Ask Customer Care to confirm your actual setup, including:

Whether the original mortgage remains in place and who services it.
The first payment Ijara will collect, its date and how it will reach the servicer.
What should happen to any existing automatic payment with the original servicer.

Get the transition instructions confirmed before changing an existing automatic payment. If Ijara has already debited your bank account but the servicer shows a payment due, request a payment trace and flag any deadline or late-payment notice. A bank withdrawal and a servicer’s posted payment are separate records.

If you expected a full payoff or refinance, explain that expectation so the team can check it against your transaction documents and confirm which arrangement was completed.