I have a small 17K loan that use to be a second morgage but is in 1st position due to the 1st loan was paid off due to house fire. I am current on the loan.
An oversite on the morgage company Specialized Loan Servicing out of Alanta, GA found out that I did not have hazard insurance for 6 months. The morgage lender thought I had bought a year but I had bought 6 months with a construction hazard policy. I bought 6 more months of insurance on the renew date which is exactly 6 months of no insurance.
Specialized loan servicing has sent me a forced insurance for 6 months in the past for insured amount of $400,000 since this was the amount I insured the property in the past. Even though I currently insured the property for 165K which is closer to property value. The lot (dirt) is worth at least $50K Currently there is an unfinished house on the property due to me running out of funding
I wonder is it legal to have forced hazard insurance for 6 months in the past while I have current hazard insurance. And the amount of insurance coverage being forced on. $400K is what a finished house would be worth (guess) What is currently on property is not worth that much due to unfinshed house.
In the same week I recieced a notice that they charged my account for 6 months of hazard insurance and cancled the insurance notice came two days later.
I am in WA state --- just wondering is it legal to buy insurance for the past. I am thinking I should send paperwork to the Federal Trade Commision in Washington DC to have them look into it. In Wa state there is the State Insurance commision but because is goes across state lines it would have to go to WA DC.
Wondering what are your thought on the issue and how do I fight it.