escrow payment problem

What is the name of your state? Utah.
I just refinanced a couple months ago. My mortgage company is refusing to pay my homeowners insurance out of my escrow account. They told my insurance provider that it was not part of the contract and it is my responsiblity. I looked at my contract, the mortgage company is responsible. I had my mortgage broker contact them and with copies of my contract in hand. The mortgage company acknowldges they are collecting escrow for insurance but they refuse to pay it. I sent the mortgage company a letter of complaint telling them to remove my insurance from escrow, I sent the letter at the end of September. I am still waiting for a reply. What legal rights do I have, and what legal recourse can I persue if the mortgage company refuses to remove my homeowners insurance from escrow. I told them to have it reflect on my December payment.

[HomeGuru]

Originally Posted by jakyll

What is the name of your state? Utah.
I just refinanced a couple months ago. My mortgage company is refusing to pay my homeowners insurance out of my escrow account. They told my insurance provider that it was not part of the contract and it is my responsiblity. I looked at my contract, the mortgage company is responsible. I had my mortgage broker contact them and with copies of my contract in hand. The mortgage company acknowldges they are collecting escrow for insurance but they refuse to pay it. I sent the mortgage company a letter of complaint telling them to remove my insurance from escrow, I sent the letter at the end of September. I am still waiting for a reply. What legal rights do I have, and what legal recourse can I persue if the mortgage company refuses to remove my homeowners insurance from escrow. I told them to have it reflect on my December payment.

**A: you could sue, that would be the ultimate legal right.

[Tankerwife]

When was your Insurance Premium due?

If it was was due the same time you refi'd, once of two things can happen.

One your old mortgage company should have paid the premium out of the old escrow account.

Two, you should have paid the premium using the escrow refund you received from the old mortgage company.

The reason the new company refuses to pay, they are collecting for next years payment, not this years. If they were to pay your current premium, it would result in and escrow shortage and they do not want and escrow shortage.

[Ciarraine]

Originally Posted by jakyll

What is the name of your state? Utah.
I just refinanced a couple months ago. My mortgage company is refusing to pay my homeowners insurance out of my escrow account. They told my insurance provider that it was not part of the contract and it is my responsiblity. I looked at my contract, the mortgage company is responsible. I had my mortgage broker contact them and with copies of my contract in hand. The mortgage company acknowldges they are collecting escrow for insurance but they refuse to pay it. I sent the mortgage company a letter of complaint telling them to remove my insurance from escrow, I sent the letter at the end of September. I am still waiting for a reply. What legal rights do I have, and what legal recourse can I persue if the mortgage company refuses to remove my homeowners insurance from escrow. I told them to have it reflect on my December payment.

If you're paying an insurance escrow at the demand of the lender, and they are refusing to disburse it, they are in violation of the Federal Real Estate Settlement Procedures Act (RESPA) and should be threatened with a lawsuit under that act. RESPA provideds for treble damages. Any litigation attorney will be delighted to talk to you about the matter and maybe take the case on contingency.