Friday, October 19, 2012

The Hazards of Hazard Insurance Escrows

I'm not sure if I have caught the hint yet or not but I think I am beginning too. Let me explain. When we bought this house, the bank screwed up the loan causing but stress and delays in the process. When we sold our previous house, the same bank screwed up the loan causing much stress and much much longer delays in the process. Now it appears as if the bank has screwed up yet again with our insurance. I think they are hinting that they don't want me as a customer.

When we signed up for our loan, we also set up an escrow account to automatically pay our insurance and property taxes. We have done that in the past (with the same bank) and it works slick since I don't have to think about it. It just happens. So we set it up this time too.

After I received the third refund in the mail from my bank and a letter stating that I was required by the terms of the mortgage loan to have hazard insurance on our home, I began to suspect something was up. I called my insurance company first and they said that I was indeed insured but that the bank can't seem to get it entered into their system correctly. They have been going back and forth for a month and just the previous week had faxed the bank our entire policy over again.

The bank on the other hand first told me that I was insured until I asked them to pull up my account and see if my policy expired on September 24th as their letter stated. They did and said oops, their fault. Then they went right into a blame game against our insurance company stating that they keep switching policies. In order to drop one house and add another, we did have to switch policies but only ONCE. So I kindly asked the bank to get their act together and find out what was wrong.

The bank returned my request the following day, the first time they have ever returned a call in this entire affair, and said that I wasn't getting refunds from them. Huh? I read them the check which was issued by the bank and said hazard insurance refund right on it. The bank again back tracked and said it was the fault of the insurance company and that they needed to send them the policy again. And so the fight goes on and I'm here in between hoping that the insurance company is right, and all the paperwork which shows that they are, the I have hazard insurance. I will never be doing another loan from this bank again.

7 comments:

roaring40 said...

Reach for the lawsmiths. Never go up against either bank or insurance on your lonesome. If for no other reason than having an outside witness.

Ed said...

Vince - How about when the insurance and the bank are going at each other and both telling me the other is wrong? In this case, I'm the outsider other than whatever outcome effects me.

roaring40 said...

You grew up on a farm, you should know what a Burdizzo is used for. Well think bank and insurance corp's either jaw of that instrument.
When those two go up against each other two things are certain, one will lose and you will lose.

sage said...

Unbelievable (except it isn't so unbelievable as such screw ups always seem to happen). Hang in there!

Woody said...

Big bank?

Woody said...

Big bank?

Murf said...

I was getting stressed out for you just reading this. I can't imagine being in the midst of all this. Don't start drinking! ;-)