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Home Loan Question - Issues with Provider
Posted on 3/14/18 at 10:23 am
Posted on 3/14/18 at 10:23 am
So, about 5 years ago we bought a house. Got our loan through a family friend at a localish but well known bank. They then “sold” the loan to another company which is pretty standard I guess. Well three out of the five years, this company has screwed up and/or failed to provide insurance payments causing my escrow account to get all messed up. I’m tired of dealing with it. My question: Is there any way to quit doing business with them and go to another company without having to refinance with someone? My current rate is 3.75.
4
Posted on 3/14/18 at 10:26 am to southerntiger83
quote:
Is there any way to quit doing business with them and go to another company without having to refinance with someone
Nope. They own the loan. Refi is your only option unless you have the ability to make those payments outside of escrow.
Posted on 3/14/18 at 10:47 am to ATLdawg25
So basically just pay the insurance directly to the provider and leave the loan company out of it completely?
I just can’t understand why a company can just flat out not do their job and there’s no way cut ties.
I just can’t understand why a company can just flat out not do their job and there’s no way cut ties.
Posted on 3/14/18 at 10:52 am to southerntiger83
You need to confirm with the mortgage company that they will allow you to do that. Most require you to hit certain criteria before allowing you to pay taxes and/or insurance outside escrow. They don't want the risk of anyone else placing a lien on the property if you don't pay.
Which is ironic, but still. Check with them.
Which is ironic, but still. Check with them.
Posted on 3/14/18 at 10:57 am to ATLdawg25
quote:
You need to confirm with the mortgage company that they will allow you to do that. Most require you to hit certain criteria before allowing you to pay taxes and/or insurance outside escrow.
The general rule is you have to be under the 80/20 LTV ratio. In other words, if you only owe (on the mortgage) 79% of the actual value of the property, you should be golden. Check with them directly to find out the specifics.
Out of curiosity, who is the current loan holder that you're having issues with?
Posted on 3/14/18 at 12:30 pm to southerntiger83
My first thought: have you upheld your end of the issue, ie, have you sent the insurance payment requests in a timely fashion to the servicer, and then checked to make sure that the payment is made? I'm not sure what you mean about your escrow account getting "messed up", but it is routine for the escrow to be slightly out of sync due to timing of payments, etc. It will fall into negative, but the mortgage company will cover what comes due until your escrow payments catch up. Then, in the next year, the mortgage servicer may increase your escrow payments to help cover any estimated shortfalls.
If your insurance truly wasn't paid (rather than simply paid late), you have a legit issue. Did your policy actually lapse due to non-payment?
If your insurance truly wasn't paid (rather than simply paid late), you have a legit issue. Did your policy actually lapse due to non-payment?
Posted on 3/14/18 at 1:17 pm to S1C EM
S1C EM, It’s currently Fifth Third Bank.
Posted on 3/14/18 at 1:26 pm to hungryone
Hungryone, we have direct deposit for the mortgage payments. It’s been set that way since we started.
This particular year, we got a check back for roughy $2200 from the mortgage company.
Then we got a letter saying our flood insurance hasn’t been paid. We called the insurance company to see what the deal was and they said no payments have been received from Fifth Third Bank. They have two phone recordings where they called and asked about the payments and the bank told them “it was in process”. Still nothing.
We then called the bank ourselves and they said “payment is pending” and to give it two days. We did and still nothing.
Coverage has not lapsed but we are in the grace period.
This same thing happened last year and I’m just tired of dealing with it.
This particular year, we got a check back for roughy $2200 from the mortgage company.
Then we got a letter saying our flood insurance hasn’t been paid. We called the insurance company to see what the deal was and they said no payments have been received from Fifth Third Bank. They have two phone recordings where they called and asked about the payments and the bank told them “it was in process”. Still nothing.
We then called the bank ourselves and they said “payment is pending” and to give it two days. We did and still nothing.
Coverage has not lapsed but we are in the grace period.
This same thing happened last year and I’m just tired of dealing with it.
Posted on 3/14/18 at 1:29 pm to southerntiger83
Also, the original bank said they no longer do business with/sell to Fifth Third because they went to shite.
Posted on 3/14/18 at 1:30 pm to southerntiger83
That sucks! I'd send a certified letter to the highest ranking person at the bank you can identify as being responsible for mortgage lending. CC as many people in the management chain as you can.
Refinancing is rarely free, so don't be eager to find another lender over this. Just make sure you pester the mortgage lending department *every day* until the payment has been made.
Refinancing is rarely free, so don't be eager to find another lender over this. Just make sure you pester the mortgage lending department *every day* until the payment has been made.
Posted on 3/14/18 at 5:00 pm to hungryone
Thanks for the help!
Posted on 3/14/18 at 5:09 pm to southerntiger83
This is why I pay insurance and taxes myself. Same thing happened to family member and guess when they found on their flood insurance was never paid by mortgage? Katrina. Took forever to fight but they fought it and won big. But it was a huge hassle to go through.
Posted on 3/14/18 at 10:30 pm to southerntiger83
I got a check two weeks ago from my servicer for escrow overpayment, it is required by law that they issue the check. The notice also reset my monthly payment to a lower payment.
Once I called them and told them my taxes are going to be higher than they predicted (they estimated the prop tax on previous owner tax, who had senior citizen discount), they cancelled the check and re-applied the funds to my escrow.
However, law doesn't allow them to re-instate my original monthly payment so I don't end up in a mess next year.
Thankfully, the nice lady on the phone explained to me and walked me through the steps to make "extra" payments toward my escrow through the normal draft.
LESSON:
When your mortgage company sends you a check, something is fricked up.
USAA is my servicer.
Once I called them and told them my taxes are going to be higher than they predicted (they estimated the prop tax on previous owner tax, who had senior citizen discount), they cancelled the check and re-applied the funds to my escrow.
However, law doesn't allow them to re-instate my original monthly payment so I don't end up in a mess next year.
Thankfully, the nice lady on the phone explained to me and walked me through the steps to make "extra" payments toward my escrow through the normal draft.
LESSON:
When your mortgage company sends you a check, something is fricked up.
USAA is my servicer.
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