Forced hazard insurance for 6 months in the past

[wolfen]

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.

[Cat Damiano]

Hi wolfen,


Welcome to the forum and thank you for joining..........

Any issues involving escrow accounts will normally fall under RESPA and you can file a complaint against the lender with HUD here;


HUD RESPA Consumer Frequently Asked Questions

Persons who believe a settlement service provider has violated RESPA in an area in which the Department has enforcement authority (primarily sections 6, 8 and 9), may wish to file a complaint. The complaint should outline the violation and identify the violators by name, address and phone number. Complainants should also provide their own name and phone number for follow up questions from HUD. Requests for confidentiality will be honored. Complaints should be sent to:




Director, Office of RESPA and Interstate Land Sales
U.S. Department of Housing and Urban Development
Room 9154
451 7th Street, SW
Washington, DC 20410
Email
Phone: (202) 708-0502

[wolfen]

Thank you for the info. That will point me in the right direction. Now I need to go through boxes of stuff and find the contract when I bought the house in 2006. I know I have it. It was burnt around the edges but the center was good. My first loan doc was about 2 inches thick and was burnt. The second was under it and saved just chared. Maybe there something where the house was destroyed and removed. Plus this was a second loan that did not have escrow when taken out plus the loan being sold. Thanks again for the response and help.

[Cat Damiano]

If you do have to request copies of your original loan docs, you can do so by sending a QWR.

Put together a QWR (Qualified Written Request)

In that letter demand your Life of Loan History, Copy of Note, Deed of Trust, Riders, all Assignments of the Deed of Trust, TIL, Right of Rescission (if refi), Lender Final HUD-1, Copy of Initial Loan Application and Final Lender Loan Application, all Disclosures and all Loan Documents in your file, Copy of Appraisal.


The following is a sample qualified written request from you, the borrower, to a lender. Use this format to address complaints under the Real Estate Settlement Procedures Act (RESPA). Be sure to read more about RESPA, and your rights under this Act, elsewhere on the RESPA site.

Attention Customer Service:
Subject: [Your loan number]
[Names on loan documents]
[Property and/or mailing address]

This is a "qualified written request" under Section 6 of the Real Estate Settlement Procedures Act (RESPA).
I am writing because:

• Describe the issue or the question you have and/or what action you believe the lender should take.
  
• Attach copies of any related written materials.
  
• Describe any conversations with customer service regarding the issue and to whom you spoke.
  
• Describe any previous steps you have taken or attempts to resolve the issue.
  
• List a day time telephone number in case a customer service representative wishes to contact you.

I understand that under Section 6 of RESPA you are required to acknowledge my request within 20 business days and must try to resolve the issue within 60 business days.
Sincerely,


[Your name]



REMEMBER: This letter SHOULD NOT be included with your mortgage payment, but should be sent separately to the customer service address.
You SHOULD continue to make the required mortgage and escrow payment until the request is resolved.
You may bring a private right of action under Section 6, if you suffer damages due to the lender's servicing of the loan. See the RESPA statute and regulations.

[silverwesoke]

Cat - Please forgive my contacting you on this thread. I am trying to find information about others who have filed complaints re the loan mod process with the big agencies, OCC, TREAS, ATG, FDIC etc . I have done a search on loansafe for sample complaints, complaints etc but am not pulling up a thread that seems to deal with this..

Wondering if you would be kind enough to direct me.. Is there any one place where I might find others posting their letters of complaint and their stories with filing the complaints? I am with BOA thanks for any information.. Be well

[Cat Damiano]

Hi silverwesoke,


One of the best examples of complaint letters can be found in Freedomwon's thread here;

My recent letter to BofA (Part 2)

You can post on her thread and ask for a sample and all the addresses she filed complaints to against BofA.