Any recourse?

What is the name of your state? Alabama

The lender acquired the homeowner's insurance for our house that we purchased from him (closed 7/17/03), and we paid the premium amount directly to him. Upon researching tax records ourselves, we found out that the house had not been built in 1969 as he stated on the insurance policy but in 1925, the previous owner bought the house for $9000 only a couple of years ago, and we bought the house for $38,207(1st mortgage) + $5742(2nd mortgage). Also, we knew that our home was not located in the "best" areas of town, and the lender told us that if we ever had a break-in, not to worry because we had homeowner's insurance. Well, a month after moving in we had one break-in, then another, then 2 more in vehicles that were parked at the house. We called in the claim and were told we only had fire coverage. The house has had water damage, although the policy did not indicate any prior claims, and it stated there is no fireplace, which there is. Is this considered insurance fraud, with the faulty party being the lender? Wasn't the insurance company supposed to inspect first? In regards to the termites, the broker stated that he had a report saying the house was termite free. Upon our request for an inspection through Terminix, we came to find out that there is hidden termite damage as well as colonies of termites still in existence. Also, improvements that were agreed upon to have been made before we moved in proved to be faulty when the roof and ceiling fell in while my 3 young children were only a few steps away. Also, the lender sold our mortgages (2) to two separate companies a few months after we signed, but is now calling our home at 7am and on weekends because we have fallen behind on a few payments (trying to keep our house habitable). Please help. All of our money is going into this shabby house, and we have three children to support.

[HomeGuru]

Originally Posted by elise1223

What is the name of your state? Alabama

The lender acquired the homeowner's insurance for our house that we purchased from him (closed 7/17/03), and we paid the premium amount directly to him.

**A: why didn't YOU get your own insurance rather than having the lender do so
************?
Upon researching tax records ourselves, we found out that the house had not been built in 1969 as he stated on the insurance policy but in 1925, the previous owner bought the house for $9000 only a couple of years ago, and we bought the house for $38,207(1st mortgage) + $5742(2nd mortgage). Also, we knew that our home was not located in the "best" areas of town, and the lender told us that if we ever had a break-in, not to worry because we had homeowner's insurance. Well, a month after moving in we had one break-in, then another, then 2 more in vehicles that were parked at the house. We called in the claim and were told we only had fire coverage.

**A: why did you not READ your insurance policy to determine coverage?
*******

The house has had water damage, although the policy did not indicate any prior claims, and it stated there is no fireplace, which there is. Is this considered insurance fraud, with the faulty party being the lender?

**A: no.
********
Wasn't the insurance company supposed to inspect first?

**A: no, there is no law requiring an inspection by the insurance company prior to a fire policy being placed.
******
In regards to the termites, the broker stated that he had a report saying the house was termite free. Upon our request for an inspection through Terminix, we came to find out that there is hidden termite damage as well as colonies of termites still in existence.

**A: then why did you close? You should have refused to close until the termite issues were cleared up.
*******
Also, improvements that were agreed upon to have been made before we moved in proved to be faulty when the roof and ceiling fell in while my 3 young children were only a few steps away.

**A: did you request copies of the paid invoices proving that the work was done by licensed and professional contractors prior to closing? Did you have a home and pest inspection?
********
Also, the lender sold our mortgages (2) to two separate companies a few months after we signed, but is now calling our home at 7am and on weekends because we have fallen behind on a few payments (trying to keep our house habitable).

**A: there is no law restricting the sale of your mortgages. In fact, if you read the mortgage docs, you will see that you agreed to the sale of the mortgages without your knowledge and consent.
********
Please help. All of our money is going into this shabby house, and we have three children to support.

**A: did you even use a Realtor? It does not appear so.

Originally Posted by HomeGuru

**A: did you even use a Realtor? It does not appear so.

ALABAMA

We did not use a realtor, although we now realize we should have. Also, these mishaps (termites, roof falling in, etc.) happened after we closed. We did see the invoices, although I do not believe the people were licensed contractors. The lender got our insurance for us because he said he could find us the best deal (he's a real smooth talker). We did read the policy, although we had reason to believe by its wording that it included theft of personal property. Also, I understand that mortgages can be sold, my question is why are the previous lenders calling us, when we've talked to our present lenders?

[HomeGuru]

Originally Posted by elise1223

ALABAMA

We did not use a realtor, although we now realize we should have. Also, these mishaps (termites, roof falling in, etc.) happened after we closed. We did see the invoices, although I do not believe the people were licensed contractors. The lender got our insurance for us because he said he could find us the best deal (he's a real smooth talker). We did read the policy, although we had reason to believe by its wording that it included theft of personal property. Also, I understand that mortgages can be sold, my question is why are the previous lenders calling us, when we've talked to our present lenders?

**A: it could be that although the loan was sold, your original lender retained the servicing rights per the secondary market purchase contract.
Why not ask the lender or ask both.