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Home loan / Deceptive Practices/Insurance Fraud

1 OFallon, MO, United States Review updated:

My mortgage was sold to Nationstar. I have made every payment on time (set it up to auto pay from my checking account). The mortgage is on a condo, and as part of the condo fee have insurance in the event of hail, fire, earthquake ect. In addition, I have an additional policy for $158, 000.00 the sale price of the real estate and personal contents. I also have PMI that I pay on a monthly basis. Since Nationstar acquired the mortgage they arbitrarily assigned their own insurance (note: turns out with investigation, from an insurance company they own) amounting to $10, 000 annually. They are currently escrowing the $10, 000 they arbitrarily assigned, as well as, assessing late charges for not paying an additional amount for insurance they felt was "necessary" to protect their interest. In addition, to this insult to injury, they are destroying my credit by reporting that I am not paying the $10, 000.00 additional insurance. Surely something can be done about the deceptive practices that this company.

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  • De
      29th of Apr, 2011
    0 Votes

    My mortgage was sold to Nationstar. I have made every payment on time (set it up to auto pay from my checking account). The mortgage is on a condo, and as part of the condo fee have insurance in the event of hail, fire, earthquake ect. In addition, I have an additional policy for $158, 000.00 the sale price of the real estate and personal contents. I also have PMI that I pay on a monthly basis. Since Nationstar acquired the mortgage they arbitrarily assigned their own insurance (note: turns out with investigation, from an insurance company they own) amounting to $10, 000 annually. They are currently escrowing the $10, 000 they arbitrarily assigned, as well as, assessing late charges for not paying an additional amount for insurance they felt was "necessary" to protect their interest. In addition, to this insult to injury, they are destroying my credit by reporting that I am not paying the $10, 000.00 additional insurance. Surely something can be done about the deceptive practices that this company.

  • Wp
      29th of Apr, 2011
    0 Votes

    First, they cannot legally force you to buy insurance from the company they own. But, they can place insurance on the home if you do not have adequate insurance coverage. Provide an insurance declaration page showing that you had coverage during the time that is specified and request that they remove everything from your credit. Also, contact the credit rating bureaus and challenge the debt.

  • Wp
      29th of Apr, 2011
    0 Votes

    Also, in a Condo situation, many mortgage companies are now requiring that you have an HO-6 or Condo Unit Owners policy. A Condo Unit Owners Policy will provide coverage for your property and liability. This is a separate policy from the Master Association Policy which just covers "common areas." Contact your insurance agent about this policy.

  • La
      3rd of May, 2011
    0 Votes

    I was in a restructure loan plan that expired in Jan. 2011. Now my mortgage payment is more than I can afford. My interest rate is 10.750% which I feel is way to high. I have decent credit and make my payments on time. I am in the process of applying for the making home loan affordable program but now after reading all these horror stories I don't know what to do. I can't afford to refiance with another company. So what do I Do?

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