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Buying or Selling a Home/Mortgage Company Responsibilities

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Hello Mr. Dennis-

My question is concerning the obligations of my mortgage company.  My mortgage was sold to my current company in June of 2013.  I first discovered a problem with them when I received notification from my flood insurance agent that they did not pay my flood insurance premium.  When I called to inquire why they had not as it had always been paid out of escrow before they stated that since I was not located in a flood zone they weren't required to pay the premium.  For the record my house lies mere feet from a the flood zone as I am 14 blocks from the bay.  I asked them why I wasn't notified of this policy and I basically heard *crickets*.  So move ahead to December and I receive a notice from my homeowners insurance agent that they didn't pay my homeowners insurance.  I faxed them the bill on 1-8-14 and they issued a check on 1-10-14, which was too late my homeowners policy was cancelled for non-payment.  My homeowners insurance agent and I conferenced called the mortgage company to explain that because they didn't pay it on time it was going to cost me a $100.00 re-instatement fee and that my insurance would also increase another $38.00.  I had to verify that I consented to the mortgage company paying the extra 138.00 out of my escrow.  Seems silly right?  I had to consent to something that I already consent to every month when I pay them almost 500.00 a month towards escrow for those very things and my taxes.  I have absolutely no faith whatsoever in this company to pay my obligations on time.  When I spoke with them and asked why when I pull up my escrow analysis online it clearly shows where they deducted the insurance and taxes in December but didn't actually pay them until January, they told me that they don't show that in my escrow at all.  Which tells me there are two sets of escrow accountings, theirs and the one they want me to see.  I have requested that they reimburse my escrow account for the 138.00 ding I had to take, but I'm not holding my breath.  My question is what kind of action can I take (if I can take any at all) to report this to see that it doesn't happen again and who would I report it to? I was thinking my states (TX) Attorney General but I'm not really sure. I want to thank you in advance for your expertise.

Answer
Based on what you have written, Blynn, if it was me I would immediately contact a good real estate attorney and bring all the papers and agreements to show him/her. Once the attorney takes the case, make sure any fees you are charged in this matter are recompensed to you.

There is no possible excuse for how the lender has treated your account. And the good attorney will make sure everything is taken care of. If you prefer, you can indeed contact the Texas Attorney General with this very lax treatment. My bet says that this problem you entered here will be taken care of (by either the local real estate attorney or the attorney general) very shortly.

To help you find a good local attorney, I would suggest you contact the local Board of Realtors and inquire who is their attorney. You will no doubt find a good one there. I do wish you well.

Dick Dennis
dixiedee13@gmail.com

Buying or Selling a Home

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Dick Dennis

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With more than 41 years as a real estate broker, I can solve most any problem presented. If I can`t, I do my research. Problems with mortgages, trust deeds, foreclosures, odd ways of conveying titles. Most any good Realtor can answer questions satisfactorily, but I answer questions that most cannot. Also, ask about my hard-copy newsletter, The Landed Gentry. It can also be sent to you via PDF.

Experience

Solving real estate problems for 37 years.

Organizations
National Association of Realtors

Publications
Publishes The Landed Gentry, guest writer in Who's Who in Creative Real Estate, First Tuesday, Financial Freedom and many newspapers

Education/Credentials
e-Pro Realtor, Certified Distressed Property Expert, Who's Who in Creative Real Estate

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