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Posted: 4/16/2024 8:30:32 AM EDT
[#1]
Quote HistoryQuoted: Maybe I'm stupid but why do people use escrow? I just pay for taxes and insurance myself like any other bill. I pay my taxes myself to make sure the county doesn't steal my home and insurance so I don't end up in this boat. The mortgage company pushed hard to get us to use escrow but I just said no or I'm going somewhere else and that was it. Because most people are morons and wouldn't secure insurance or pay their taxes on their own, causing the mortgage company to find their property burned to the ground or sold at a tax sale when they go to foreclose far too often for them to tolerate the risk. Kharn |
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Posted: 4/16/2024 8:34:03 AM EDT
[#2]
Did your mortgage payment become lower the last few months?
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Posted: 4/16/2024 8:37:11 AM EDT
[#3]
This is exactly why we pay our own property taxes and homeowners insurance.
No escrow. We have been burned before, by Countrywide, on our first house. We were noobs. Never again. We pay the mortgage company their due, plus extra towards principal, and nothing more. Have done this for the last 3 homes. If you maintain your credit rating, no mortgage company will deny your option to do this. Never had to do PMI either. |
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Posted: 4/16/2024 8:38:32 AM EDT
[#4]
Ins co mailed you a cancel notice.
Did you open your mail? |
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Posted: 4/16/2024 8:39:05 AM EDT
[#5]
Quote HistoryQuoted: I asked the Indian in what world does a mortgage company allow a property to sit without insurance. He acted like he knew nothing.... Quote HistoryQuoted: Quoted: So the mortgage company allowed you to have a mortgage on a house but not insure it? Yeah right... don't they typically send you multiple letters and then threaten to purchase it for you? I asked the Indian in what world does a mortgage company allow a property to sit without insurance. He acted like he knew nothing.... Of course he did. Hire an attorney. If they failed to escrow insurance that you personally were paying being charged for the mortgage company is likely going to end up paying. What kind of roof do you have that is 50k? Silver and gold? |
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Posted: 4/16/2024 8:39:20 AM EDT
[#6]
Start here OP. Things can move quickly when the state gets involved.
https://insurance.mo.gov/consumers/complaints/index.php |
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Posted: 4/16/2024 8:39:41 AM EDT
[#7]
That’s almost as bad as an employer withholding taxes and not paying them.
I bet OP wins. |
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Posted: 4/16/2024 8:40:42 AM EDT
[#8]
I love the people in this thread that decided who their mortgage company was. Mine has changed hands 3 times. My local bank has also been bought out. You could change mortgage companies and have a new one tomorrow whether you like it or not.
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Posted: 4/16/2024 8:42:06 AM EDT
[#9]
Man this is the one instance where Im glad I dont escrow
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Posted: 4/16/2024 8:44:19 AM EDT
[#10]
Quote HistoryQuoted: This is a game you are not proficient at. You need professional help. Quit talking to them and hire an attorney now. This. |
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Posted: 4/16/2024 8:44:38 AM EDT
[#11]
Quote HistoryQuoted: This is a game you are not proficient at. You need professional help. Quit talking to them and hire an attorney now. This. YOU didnt screw up. YOU in good faith paid your bill. What would have happend if you hadny paid your bill? (REPO) A professional can likely get to bottom of this for you. Additionaly local CU got my business on my mortgauge for a reason, no broker fees(saved money and lowered my rate), plus if i have an issue i have to drive like 15 minutes to "go full Karen". You aint driving to India to "go full Patel" on some indian call center farm peon. |
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Posted: 4/16/2024 8:49:17 AM EDT
[#12]
Quote HistoryQuoted: Maybe I'm stupid but why do people use escrow? I just pay for taxes and insurance myself like any other bill. I pay my taxes myself to make sure the county doesn't steal my home and insurance so I don't end up in this boat. The mortgage company pushed hard to get us to use escrow but I just said no or I'm going somewhere else and that was it. The mortage comp I used when I bought my house required it to loan me the money. |
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Posted: 4/16/2024 8:51:41 AM EDT
[#13]
Quote HistoryQuoted: Op I was sent this from the wife who is a banking manager over construction lending. She has been in the industry for 25+ years now. The mtg co will be responsible for placing a policy. He should have gotten notification from them that they did not receive a renewal from the insco. The loan is likely owned by fannie/Freddie and there are insurance requirements that go with that. Notifications being one of them and purchase of a policy another. He may be on the hook for the policy premium, but there will be insurance to cover the loss. Random Subject matter experts is why ARF is so awesome. Also, I've got a 1985 Delorian that I need a flange nut for the flux capacitor mounting bracket, due to quantum interference i need to have a semi permeable quark membrane, so cant use simple aluminum and the turbo encabulator fermion interference prevents a magnetic resonance mounting options. Any fixes?  |
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Posted: 4/16/2024 8:52:00 AM EDT
[#14]
Quote HistoryQuoted: I asked the Indian in what world does a mortgage company allow a property to sit without insurance. He acted like he knew nothing.... It wasn't an act. |
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Posted: 4/16/2024 8:53:29 AM EDT
[#15]
Sorry to hear that man. PHH is the DEVIL!!!!!!! An old mortgage we had a few years ago got sold to those assholes and it was not a fun experience!!
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Posted: 4/16/2024 8:54:45 AM EDT
[#16]
Get a lawyer. Sue both. I bet PHH is lying. They will be liable.
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Posted: 4/16/2024 8:56:03 AM EDT
[#17]
also,
ALWAYS CHECK IF INSURANCE WAS PAID. ALWAYS. |
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Posted: 4/16/2024 8:58:00 AM EDT
[#18]
Quoted: TLDR: I'm screwed and everyone is blaming the other guy. I called my insurance company yesterday, AAA, to have someone come look at our roof after a hail storm. The first lady I speak to takes all the info and tells me an adjuster will call. Ten minutes later the adjuster calls and tells me the policy for 125.... Was cancelled in January due to non payment. I said, 125 is our old house that we sold and closed on last summer, so it shouldn't have had any payment expected in January. She replied, oh, they put the claim in under the wrong address. I then confirm our new address and she says, it looks like that was cancelled in February due to non payment. I said that can't be possible, the mortgage company pays that from escrow. She looks a little more, nope, it was never paid, sorry, we won't be covering any damage and you don't have a policy with us. I call my agent and leave a message. I call my mortgage company, PHH, and get connected to someone in India. I start going through the situation with her and she connects me to an "insurance specialist." He claims they requested payment information from AAA through the website and never heard back and then tried calling but never got a response. So, they knew who my insurance carrier was and just said oh well, I guess we are paying? This guy can't give me ANYTHING. He says he doesn't have email to send me ANY record of their attempted contact with AAA. If he was standing in front of me I think I would have strangled him. I call my agent back who had tried calling. He confirms no payment was made by the mortgage company and says there is no record in their system of PHH contacting them. He also says they don't show PHH as the loan servicer and AAA sent the bill to C**** Mortgage. I told him that was our broker. My agen stays it looks like they were never notified the loan was sold. I call my mortgage broker. He says no, we notified them and I will email you the notification letter. He is supposed to find out today if it was mailed or emailed. Everyone one is pointing a finger at everyone else. I'm not sure what recourse I have other than to hire an attorney and sue everyone for the cost of a new roof. This is my third house and I have never had anything even close to this situation happen before. I've never had to check up to be sure the mortgage company was paying my homeowners insurance. I'm waiting on pricing for a roof but I estimate it will be near $50k. I am so pissed right now I can't see straight. Until a couple months ago, I was an attorney whose primary practice was real estate closings. Hire a reputable attorney and sue the lender and the insurance company. Then they’ll figure out who dropped the ball. Keep in mind though that you will likely have to eat the attorney fees. |
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Posted: 4/16/2024 8:58:47 AM EDT
[#19]
Quote HistoryQuoted: Of course he did. Hire an attorney. If they failed to escrow insurance that you personally were paying being charged for the mortgage company is likely going to end up paying. What kind of roof do you have that is 50k? Silver and gold? Ive got a modest 1600 square foot ranch style roof, no gables, no pitch changes, none of that. I got 3 quotes ranging from 18500 to 16500 for a replacement for simple shingles, i had option for standing seam metal roof for a mere 22k as well. And those numbers are 3 years old, in northern rural Maine(labor is cheap here). If roof is "fancy" , large or tall , special shingles, it could fairly easily go up. |
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Posted: 4/16/2024 8:59:41 AM EDT
[#20]
Quote HistoryQuoted: Alternatively, think of how livid you'd be when they would have denied your claim. It's the new insurance norm. No it isn’t. |
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Posted: 4/16/2024 9:01:24 AM EDT
[#21]
Might be a chore to get a bulldozer to india
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Posted: 4/16/2024 9:01:53 AM EDT
[#22]
Quote HistoryQuoted: This is a game you are not proficient at. You need professional help. Quit talking to them and hire an attorney now. Unfortunately, this. |
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Posted: 4/16/2024 9:03:48 AM EDT
[#23]
Maybe I missed it, but where was the insurance portion of your escrow actually going? What happened to those funds?
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Posted: 4/16/2024 9:04:06 AM EDT
[#24]
Our mortgage company gave us a .5% rate cut if we used their escrow service. I get a receipt from them when they pay out the taxes and insurance. It made sense to me to use the escrow service. Op, hire an attorney. Someone screws you over and owes you some money.
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Posted: 4/16/2024 9:07:03 AM EDT
[#25]
Quote HistoryQuoted: That is the plan. Just trying to find an attorney to deal with the situation. I am also having a new policy written first thing this morning so we have insurance on the house. Thank God it was just a hail storm and not a tornado. Quote HistoryQuoted: Quoted: This is a game you are not proficient at. You need professional help. Quit talking to them and hire an attorney now. That is the plan. Just trying to find an attorney to deal with the situation. I am also having a new policy written first thing this morning so we have insurance on the house. Thank God it was just a hail storm and not a tornado. Yep, lawyer up. And don’t sign a policy with AAA in case you find them to be liable/partially liable for the f’up. This would be an interesting case to work up. Good luck OP. |
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Posted: 4/16/2024 9:07:13 AM EDT
[#26]
Quote HistoryQuoted: So the mortgage company allowed you to have a mortgage on a house but not insure it? Yeah right... don't they typically send you multiple letters and then threaten to purchase it for you? It's a signed contract that they violated. They could take your house if you weren't covered. Interested in what recourse therre is when they created the problem,. |
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Posted: 4/16/2024 9:12:07 AM EDT
[#27]
Quote HistoryQuoted: It's often required. Quote HistoryQuoted: Quoted: Maybe I'm stupid but why do people use escrow? I just pay for taxes and insurance myself like any other bill. I pay my taxes myself to make sure the county doesn't steal my home and insurance so I don't end up in this boat. The mortgage company pushed hard to get us to use escrow but I just said no or I'm going somewhere else and that was it. It's often required. I would find a different mortgage company then. I have never agreed to have an escrow for insurance and taxes. Always kept separate. |
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Posted: 4/16/2024 9:13:32 AM EDT
[#28]
Quote HistoryQuoted: I asked the Indian in what world does a mortgage company allow a property to sit without insurance. He acted like he knew nothing.... He's Indian. He doesn't know anything He wipes his ass with his hand. |
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Posted: 4/16/2024 9:13:34 AM EDT
[#29]
Quote HistoryQuoted: Because most people are morons and wouldn't secure insurance or pay their taxes on their own, causing the mortgage company to find their property burned to the ground or sold at a tax sale when they go to foreclose far too often for them to tolerate the risk. Kharn |
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Posted: 4/16/2024 9:14:04 AM EDT
[#30]
If the insurance is not being paid from the escrow account, I would wonder if the property taxes are being paid. I also wonder why the OP did not get notification from the insurance company or the mortgage company.
We have had escrow in the past, mostly due to a mortgage with a credit union that required escrow on all mortgages, regardless of LTV. One message that was hammered home by the county tax officd was the responsibility to pay taxes is the owners, even if the escrow service is supposed to make the payments. As such, I kept track of the payment status for both insurance and taxes. |
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Posted: 4/16/2024 9:14:26 AM EDT
[#31]
I always check with my insurance agent to make sure stuff gets paid just because of stuff like this.
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Posted: 4/16/2024 9:16:26 AM EDT
[#32]
That really sucks OP, I'm sorry. And I'm not trying to be edgy or shitty to you, but you should have received in the mail from AAA a past-due billing notice notifying you the payment was not received as well as a final cancellation notice.
Now, info that may be useful to you: if this was a the initial bill (at policy inception) of a newly acquired property, and the premium was paid by you at closing (in your closing costs to establish the escrow account), it is the loan originator's responsibility to distribute the payment when the loan funds. It doesn't matter if the loan was immediately sold. Loan originator collected the premium from you at closing and should have distributed it. So if this is the case, loan originator has some explaining to do about what they did with those closing funds. OTOH, If this was the payment for the first policy renewal, then it's a matter of who ultimately has responsibility to update the policy with the new mortgagee info. And unfortunately, that's you. Ultimately YOU are the only person who can endorse your policy. |
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Posted: 4/16/2024 9:19:16 AM EDT
[#33]
The blame lays on the mortgage company if you ask me.
I would get a reality lawyer and sue the fuck out of them. Hopefully I'm right and I'm rooting for you. |
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Posted: 4/16/2024 9:23:32 AM EDT
[#34]
Quote HistoryQuoted: Ive got a modest 1600 square foot ranch style roof, no gables, no pitch changes, none of that. I got 3 quotes ranging from 18500 to 16500 for a replacement for simple shingles, i had option for standing seam metal roof for a mere 22k as well. And those numbers are 3 years old, in northern rural Maine(labor is cheap here). If roof is "fancy" , large or tall , special shingles, it could fairly easily go up. Quote HistoryQuoted: Quoted: Of course he did. Hire an attorney. If they failed to escrow insurance that you personally were paying being charged for the mortgage company is likely going to end up paying. What kind of roof do you have that is 50k? Silver and gold? Ive got a modest 1600 square foot ranch style roof, no gables, no pitch changes, none of that. I got 3 quotes ranging from 18500 to 16500 for a replacement for simple shingles, i had option for standing seam metal roof for a mere 22k as well. And those numbers are 3 years old, in northern rural Maine(labor is cheap here). If roof is "fancy" , large or tall , special shingles, it could fairly easily go up. I just had 60 square of certainteed landmark shingles put on. Complete tear off, whatever they do for a new roof. My price was just under 20k. They brought 10 Amish guys and did it in one day. |
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Posted: 4/16/2024 9:26:23 AM EDT
[#35]
Quote HistoryQuoted: This is a game you are not proficient at. You need professional help. Quit talking to them and hire an attorney now. And never get a shitty loan with an escrow account. |
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Posted: 4/16/2024 9:26:36 AM EDT
[#36]
OP, you need to file a complaint with the CFPB (Consumer Financial Protection Bureau). Be very specific in your complaint with dates, calls, what happened. That may be your best bet. The CFPB has taken prior action with PHH before.
Go to consumerfinance.gov and in the upper right corner of the homepage is a link for filing a complaint. |
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Posted: 4/16/2024 9:28:15 AM EDT
[#37]
Quote HistoryQuoted: And never get a shitty loan with an escrow account. You can't help it under most circumstances. My loan originated from one lender and they sold it to wells fargo. You have no control |
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Posted: 4/16/2024 9:29:36 AM EDT
[#38]
Stop paying into escrow and pay your taxes and insurance yourself.
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Posted: 4/16/2024 9:30:02 AM EDT
[#39]
Quote HistoryQuoted: I would find a different mortgage company then. I have never agreed to have an escrow for insurance and taxes. Always kept separate. Quote HistoryQuoted: Quoted: Quoted: Maybe I'm stupid but why do people use escrow? I just pay for taxes and insurance myself like any other bill. I pay my taxes myself to make sure the county doesn't steal my home and insurance so I don't end up in this boat. The mortgage company pushed hard to get us to use escrow but I just said no or I'm going somewhere else and that was it. It's often required. I would find a different mortgage company then. I have never agreed to have an escrow for insurance and taxes. Always kept separate. It's not the mortgage company it's how much equity you have in the home, it's usually required if under 20% also required for all FHA loans. If mortgage insurance is required you'll have to have escrow, very common with first time homeowners. |
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Posted: 4/16/2024 9:30:07 AM EDT
[#40]
That REALLY sucks OP... I've managed to never have an escrow account so take care of everything myself directly.
I think I would be extremely pissed that I called my home owners insurance and was connected to Steve in India, I had no idea insurance companies were on board with that.. that's bullshit, cheapskate runaround for a service that's very personal and critical.. |
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Posted: 4/16/2024 9:31:13 AM EDT
[#41]
Quote HistoryQuoted: +1 PHH sucks +2 Refinanced a few years ago and they sold our mortgage to PHH. They are nothing short of a giant pain in the ass to deal with. |
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Posted: 4/16/2024 9:34:17 AM EDT
[#42]
That sucks OP. Hate that for you. I would first:
Obtain Homeowners insurance. Next contact your state Insurance Commissioner. Give them maybe a couple of weeks at most. If they can not help you then contact a " REAL ESTATE " ATTORNEY. Do not use just any attorney find a competent real estate attorney to handle this for you. Good luck |
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Posted: 4/16/2024 9:36:57 AM EDT
[#43]
With your loan payment, escrow the money for your taxes, insurance, and insurance deductible.
You write and send the checks. Life is easy knowing shit is taken care of. |
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Posted: 4/16/2024 9:37:23 AM EDT
[#44]
Do you not check your mortgage statement monthly, either mailed to you or online?
I log onto my mortgage company website along with the insurance and county tax assessor's websites and check to see that my taxes and insurance are paid when due. Insurance is paid 1x per year in July, Taxes 2x per year in April and November. The mortgage company also sends me a monthly statement in the mail that I check and I log onto my account at least once a month and look at it. I'd also be having a talk with the insurance company as to why you didn't receive a warning that your policy was going to be cancelled and another notice when it was cancelled. I can't imagine a reputable insurance company didn't send a notice by email and/or regular mail and it's likely they did and you overlooked it. |
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Posted: 4/16/2024 9:37:31 AM EDT
[#45]
I didn't escrow, and just pay my insurance up front every year. Helps avoid these issues.
But I was screwed over, due to all the storms. Apparently they changed my policy without being clear on the stipulations. So a storm hits and I get a leak that drips to my ceiling in the informal dinning area. I call the insurance to make the claim, and they say they will only pay 30% of the 28k dollar job. They said in January the prior year they sent me a letter. I look up the letter through the sites e-messages, and it states "your policy changed to actual replacement cost of the roof". I told them I do recall seeing that, but figured "actual replacement cost" meant it would pay what ever it cost to replace the roof. What the agent told me, "see at the bottom by the asterisk? It says to read the policy carefully". How was I to read that any other way. But basically they prorated the roof down to 30% b/c of age of the roof. Seems like every year they drop down by 10% of the value now. |
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Posted: 4/16/2024 9:40:08 AM EDT
[#46]
What you're discovering is mortgage servicing is the D League of the financial industry. The goal is to collect the payments as cheaply as possible. Anything beyond that, well, good luck. Anyone with any talent gets out of mortgage lending as quickly as possible. The front end is little more than sales, the back end is a boiler room operation.
The fact that a mortgage servicer allowed you to go without insurance is frankly astounding. That's required in the docs. It's always been required, will always be required, and is never waived. Former mortgage servicer in a prior life. Don't judge me, I needed a job. |
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Posted: 4/16/2024 9:43:07 AM EDT
[#47]
Sounds like you may have a case. Hire attorney and sue for damages plus extras/legal costs.
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Posted: 4/16/2024 9:43:31 AM EDT
[#48]
Quote HistoryQuoted: I love the people in this thread that decided who their mortgage company was. Mine has changed hands 3 times. My local bank has also been bought out. You could change mortgage companies and have a new one tomorrow whether you like it or not. Running joke in the banking industry several years ago. "I've worked for four different banks in ten years and never moved from my desk." Mortgages are a commodity. Who ever does it cheapest, wins. |
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Posted: 4/16/2024 9:44:35 AM EDT
[#49]
Quote HistoryQuoted: This is a game you are not proficient at. You need professional help. Quit talking to them and hire an attorney now. This. It will all work out OP, however....what a shit show. |
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Posted: 4/16/2024 9:46:26 AM EDT
[#50]
Well here is the good news... odds are your "hail damaged" roof doesn't need to be replaced. Far too many roof tops are getting replaced thanks to crooked contractors, crooked independent adjusters, or improperly trained or lazy adjusters.
Also, I'd be getting HO insurance on your house ASAP regardless. Get something in force TODAY until this current debacle gets figured out. If you have a fire tonight and have a total loss you're truly F'ed. This hail storm odds are probably didn't do much damage, if any. Good luck. |
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