I lease and sell homes. I have a mortgage with Washington Mutual, which Chase Bank now owns, on a home in Nevada.
When called about a late payment in August of 2009, I told Chase that home was vacant and for sale, that there was a contract to sell the property by lease/option, and that the loan should be current the next month.
They (Chase) contacted Farmers (my insurance co.) and told them the house was vacant on August 21, 2009. Farmers policy is to cancel insurance after 30 days of vacancy.
I sold the home by lease/option on Sept 1, 2009, and occupancy took place on that date. I have retained legal title to that property until the new owners exercise their option to purchase. Weststar is my servicer on that loan, and they began paying Chase on Sept. 3, 2009 from the proceeds of the lease.
That same week, I notified Chase of the sale on Sept 1, 2009. Chase never informed Farmers of the sale and occupancy, therefore Farmers canceled the policy on that home. My annual premium with Farmers was $2, 043/yr.
Chase then had Assurant, Inc. place a policy on that property. Assurant's premium is $7, 683/yr.
My monthly payment increased nearly $1, 100/mo. from $2, 350.34/mo. to $3, 439.37/mo. due to the 'increased impounds' needed to cover the $5, 640/yr. increase in insurance, retroactive back to September of 2009.
I was not informed of the increased payments, or of Assurant's covering this home until today, June 18, 2010, by Jay Balagtas (Chase CS), who told me there was no business arrangement between Chase and Assurant.
FYI, the property taxes went down $718/yr.to $5, 071.88/yr., and the interest rate dropped from 5.29% to 5.06% during the same period.
Loraine at Assuant (800-332-8883) told me Chase and Assurant are contracted affiliated partners, and that she is sending me a copy of the insurance policy and of the agreement between Chase and Assurant. Later that day, I confronted George Serrudo from the Chase customer service (CS) dept. (800-310-3770) about what Loraine told me.
I never received an insurance policy, was never told of the contracted business arrangement between Chase and Assurant, and was never given formal notice of that new policy with Assurant.
I was never given a form releasing my right to individual insurance representation.
Here are excerpts from Assurant's website:
January 28, 2009
Assurant Specialty Property Uses Chase...
Assurant Specialty Property is a leading provider of specialty insurance and collateral protection programs, including creditor-placed homeowners insurance...
They develop, underwrite, market and administer specialty property and personal lines of insurance through collaborative relationships with leading home mortgage companies...
Assurant Specialty Property serves clients and their customers in all 50 states and the District of Columbia...
Partner with clients who are leaders in their industries and who have built leadership positions in a number of specialty insurance market segments worldwide...www.assurantspecialtyproperty.com
I contacted the Nevada Insurance Division. They state Assurant is not licensed in Nevada to sell insurance at all, let alone covering property located in Nevada, and that they required to give me a copy of the policy at the time any coverage takes affect.
I have over $150k in equity in this home. This is how lenders 'legally' steal peoples property through foreclosure.
Not sure how this is going to be resolved, but I am going to demand a release of the loan and a deed of reconveyance for mortgage fraud, insurance fraud, breach of contract, wire fraud, and mail fraud.