Posted by River City on February 06, 2006 at 09:53:45:
Ask them who their regulator is and tell them they are in violation of RESPA and you are going to report them. Then do just that. HUD (Department of Housing and Urban Development) is the “officiator” of RESPA, so I would copy any correspondence to them. Also copy the lender and the lender’s licensing agency. All communications with the lender should be in writing and NOT by phone. Be CLEAR, direct and to the point in all correspondence. You do not want to go back and forth with questions because this will just take longer.
Sue for restoration of insurance escrow? - Posted by gerald
Posted by gerald on February 02, 2006 at 12:30:59:
About six months ago, on my monthly mtg statement I noticed $3100 removed my escrow account to purchase homeowners insurance. I called customer service, no help, said to put it in writing.
After several letters with no response, the mtg co said they had no evidence of coverage back in 2003, so the $3100 was to pay for forced insurance. I sent them my policy showing coverage, also pointed out that they had paid the $838 from my escrow. They replied their records showed this was cancelled.
If so, why wasn’t I notified? Why wasn’t I given a refund or credit to my escrow account? How can they assign forced insurance at an outrageous price two years after the fact? Where is this phantom policy?
I can’t talk to anyone to correct their error. I just get a form letter repeating their record indicate the policy was cancelled.(which is baloney.)
I’m wondering if I should sue in my local small claims court to restore my $3100 they stole from my escrow? Is this the only was I can get their attention? I think this would be a simple open and shut case. Or, is there a better recommendation?
Lenders are required by RESPA to send to you an annual escrow account statement that shows additions and disbursements to your escrow account. If you made your monthly payments in a timely manner, the lender is obligated to make the disbursements on time so coverage does not lapse.
There are exceptions when borrowers do not make their payments in a timely manner. Sounds like maybe you were behind a little in making your payments???
Re: Sue for restoration of insurance escrow? - Posted by gerald
Posted by gerald on February 04, 2006 at 20:31:46:
No, I’ve never been late with a payment. Read my problem.
The mtg co. just arbitrarily debited my escrow account without warning, claiming that their records show I had no insurance. I sent them my policy showing I did. They still won’t credit my escrow account with the money they took.
I can’t get their attention or get a human to return my calls. This is my frustration.