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Hello,
I need an advice in a Kafka situation with my mortgage company and
would greatly appreciate any help. A couple years ago I changed my
hazard insurance. Two month ago I received an angry letter from the
bank, followed by even angrier within a couple weeks, telling that I
need to provide them insurance information, or they will buy one for
me. Not a big deal. I called, them a few times, faxed declaration
from my new insurance. They were really nice, and told me to
disregard last letter. Than, to my big surprise, I have discovered,
that they purchased hazard insurance for me, at about 10 times my
insurance premium. I called them again; they were nice again and told
me, that they do not have information for previous year. I faxed them
information again, and again... you got the idea. Nothing happens,
except now I got a new payment booklet with escrow shortage coupon. I
re-read mortgage agreement. It says, that I should provide with a
proof of insurance upon request within a reasonable time. So, I felt
like I did nothing wrong. What should I do? How to deal with bank
bureaucrats in a most efficient way?
Leave it alone and hope they will figure it right?
Hire a lower?
Start complaining to AG, OCC, etc.?
Any advice?
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Alex,
You are having a problem with your mortgage company. The problem is that
you changed the company that handles your hazard insurance. Somehow, the
lender was not notified or has no record of this change. You've tried
several times to provide them with prrof of insurance but your proof does
not seem to get into their records. They have now used your escrow funds to
buy insurance. You ask for advice.
Call and get the name of the person with whom you are dealing. Find out
what they want as proof of insurance. Send them that information, via
cerified mail, addressed to the person who is handling your problem. Include
proof that your insurance has never lapsed. Include a cover letter. Insist
that they have 3 months to credit your account for the superfluous insurance
and provide you with an account statement. If they don't comply head to
small claims court. Stop using the phone and create a paper trail.
Good luck,
Dave M.
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In article <u8j1v39f9ajluh17230bngdebc472gvejk@4ax.com>,
Alex K <k.alex@lycos.com> wrote:
Hello,
I need an advice in a Kafka situation with my mortgage company and
would greatly appreciate any help. A couple years ago I changed my
hazard insurance. Two month ago I received an angry letter from the
bank, followed by even angrier within a couple weeks, telling that I
need to provide them insurance information, or they will buy one for
me. Not a big deal. I called, them a few times, faxed declaration
from my new insurance. They were really nice, and told me to
disregard last letter. Than, to my big surprise, I have discovered,
that they purchased hazard insurance for me, at about 10 times my
insurance premium. I called them again; they were nice again and told
me, that they do not have information for previous year. I faxed them
information again, and again... you got the idea. Nothing happens,
except now I got a new payment booklet with escrow shortage coupon. I
re-read mortgage agreement. It says, that I should provide with a
proof of insurance upon request within a reasonable time. So, I felt
like I did nothing wrong. What should I do? How to deal with bank
bureaucrats in a most efficient way?
Leave it alone and hope they will figure it right?
Hire a lower?
Start complaining to AG, OCC, etc.?
One option would be to sue them. Name on the suit the company,
their registered agent in your state (which you can get from
your secretary of state), all the officers (which you can get
from their web site or SEC filings), their directors, and
everyone that you have talked with so far.
They will end up being served and a request to appear. At
that point, one of a few things might happen:
1) they might ignore it, and you win by default.
2) they might fight it, and get a big team of lawyers to start
working on it. Here, you point out that fixing the problem would
cost much less than what any of those high powered lawyers cost.
3) they might have someone contact you, and that someone might
actually be able to get the problem fixed.
4) it might hit the radar screen of one of their officers,
who might make it someone's task to fix your problem.
5) the bank gets bought out by someone else, or your loan gets
sold, and the paperwork gets even more messed up.
-john-
--
======================================================================
John A. Weeks III 612-720-2854 john@johnweeks.com
Newave Communications http://www.johnweeks.com
======================================================================
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Alex K wrote:
[bank does not respond to repeated proofs of contractually needed insurance]
What should I do? How to deal with bank
bureaucrats in a most efficient way?
Leave it alone and hope they will figure it right?
Hire a lower?
Start complaining to AG, OCC, etc.?
Any advice?
Kick the problem upstairs. Explain to whoever you get when you phone the
bank that you are not interested continuing discussions at his level
because they've proved fruitless. Ask to speak to the person's superior.
See if that helps. If not, continue to kick it upstairs documenting as
you go. Be SURE to take each person's name as you document your
experiences with the bank. Eventually you'll hit a keystone person who
can kick this thing back into line.
-paul
ianal
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In article <u8j1v39f9ajluh17230bngdebc472gvejk@4ax.com>,
k.alex@lycos.com says...
Hello,
I need an advice in a Kafka situation with my mortgage company and
would greatly appreciate any help. A couple years ago I changed my
hazard insurance. Two month ago I received an angry letter from the
bank, followed by even angrier within a couple weeks, telling that I
need to provide them insurance information, or they will buy one for
me. Not a big deal. I called, them a few times, faxed declaration
from my new insurance. They were really nice, and told me to
disregard last letter. Than, to my big surprise, I have discovered,
that they purchased hazard insurance for me, at about 10 times my
insurance premium. I called them again; they were nice again and told
me, that they do not have information for previous year. I faxed them
information again, and again... you got the idea.
Not as unusual as it should be.
Have you provided them with information about the prior year, as well as
the current year?
Does the information for the prior year show the mortgagee correctly
listed on the Declarations?
Does the information for the prior year show any gap in coverage between
the old insurance and new?
Nothing happens,
except now I got a new payment booklet with escrow shortage coupon. I
re-read mortgage agreement. It says, that I should provide with a
proof of insurance upon request within a reasonable time. So, I felt
like I did nothing wrong. What should I do?
First, as painful as it sounds, pay the higher bills until the situation
is straightened out. People have been forced into foreclosure by not
paying disputed bills for mistaken force-placed coverage.
Next, ask them to tell you when they first requested proof of insurance
for the prior year. Did they in fact ask for it last year and get no
response? Or have you responded as quickly as reasonably possible given
the date of their first request?
If your prior-year proof of insurance does list the mortgagee correctly,
your insurance company should be able to document that they sent
evidence of insurance to the mortgagee when the policy first issued.
Reportedly, there are some lenders out there who specialize in predatory
practices that generate steep late fees, and who are very slow to
correct situations like this. It might be worth your time to research
the history of your lender and decide whether to refinance out of this
mess. (Besides, rates have come down quite a bit lately.)
Disclaimer: I am not a lawyer, and unless you see my name printed on
your Declarations page, I am not your insurance agent.
--
josh@phred.org is Joshua Putnam
<http://www.phred.org/~josh/>
Braze your own bicycle frames. See
<http://www.phred.org/~josh/build/build.html>
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On 2008-03-31 04:39:11 -0700, Alex K <k.alex@lycos.com> said:
I need an advice in a Kafka situation with my mortgage company and
would greatly appreciate any help. A couple years ago I changed my
hazard insurance. Two month ago I received an angry letter from the
bank, followed by even angrier within a couple weeks, telling that I
need to provide them insurance information, or they will buy one for
me. Not a big deal. I called, them a few times, faxed declaration
from my new insurance. They were really nice, and told me to
disregard last letter. Than, to my big surprise, I have discovered,
that they purchased hazard insurance for me, at about 10 times my
I wonder if it would do any good to contact your new insurance company
and let them know the bank is trying to force you to switch to another
company. Perhaps your company would be motivated to get in touch with
that bank and get things straightened out, if they are looking at a
possible loss of your business.
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| On 2008-03-31 04:39:11 -0700, Alex K <k.alex@lycos.com> said:
|| > I need an advice in a Kafka situation with my mortgage company and
| > would greatly appreciate any help. A couple years ago I changed my
| > hazard insurance. Two month ago I received an angry letter from the
| > bank, followed by even angrier within a couple weeks, telling that I
| > need to provide them insurance information, or they will buy one for
| > me. Not a big deal. I called, them a few times, faxed declaration
| > from my new insurance. They were really nice, and told me to
| > disregard last letter. Than, to my big surprise, I have discovered,
| > that they purchased hazard insurance for me, at about 10 times my
|| I wonder if it would do any good to contact your new insurance company
| and let them know the bank is trying to force you to switch to another
| company. Perhaps your company would be motivated to get in touch with
| that bank and get things straightened out, if they are looking at a
| possible loss of your business.
We had the exact same situation recently at my daughter's home. Ended up we
had four different groups (two on the insurance company side and two on the
mortgage/bank side. No one knew what the other was doing.
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