Katrina related problem

[preston77]

My girlfriend and I bought our home 2 months prior to Katrina. When renewel was due 1 year later I sent the paperwork into my mortgage company(American Home Mortgage) and I thought it was paid. 3 months later I tried to refinance the house and I was informed that I had no homeowners insurance. It was to long for me to renew which was what was supposed to have happened from $2200 to $2800 for the year. The only company that was writing policies was Louisiana Citizens which hit me for a nice $5900 a year. On top of that they didn't pay my property taxes the whole time I've owned the house but thats for another thread. Now my payments have gone from a little over $1900 a month to $2857 a month. I really really could use some help on this matter. American Home Mortgage is refusing to pay the difference and has sent me the letter they had recieved from Lexington Insurance stating that the payments should be paid to the underwriter, they do not accept payments from mortgage company's or homeowner's and please send the check to the broker,which they didn't, nor did they contact myself or the broker. Can anyone help or point me in the right direction?What is the name of your state?

 

[moburkes]

My girlfriend and I bought our home 2 months prior to Katrina. When renewel was due 1 year later I sent the paperwork into my mortgage company(American Home Mortgage) and I thought it was paid. 3 months later I tried to refinance the house and I was informed that I had no homeowners insurance. It was to long for me to renew which was what was supposed to have happened from $2200 to $2800 for the year. The only company that was writing policies was Louisiana Citizens which hit me for a nice $5900 a year. On top of that they didn't pay my property taxes the whole time I've owned the house but thats for another thread. Now my payments have gone from a little over $1900 a month to $2857 a month. I really really could use some help on this matter. American Home Mortgage is refusing to pay the difference and has sent me the letter they had recieved from Lexington Insurance stating that the payments should be paid to the underwriter, they do not accept payments from mortgage company's or homeowner's and please send the check to the broker,which they didn't, nor did they contact myself or the broker. Can anyone help or point me in the right direction?What is the name of your state?

I don't really know what you're saying. You had an escrow account to pay taxes, insurance, and, maybe, PMI? I can't imagine what paperwork you'd need to send to the mortgage company. I've never sent paperwork to my mortgage company at renewal time, nor have I, as an insurance agent, been asked by a customer to send information to a mortgage company for a renewal. So, what are you saying went wrong?

 

[preston77]

yes i have a escrow account that covers all that. so when it was time to renew my insurance i called ahm and they said i would have to send them in the letter that i recived from the insurance company. same thing with the property tax bill i recived from the parish. why they want all that, i dont know. it boils down to they were supposed to pay all of it, since it was escrowed in my payment,they didnt. so im around $900 more a month in escrow b/c they dropped the ball and dont want to man up on it.

 

[moburkes]

When you purchased the insurance policy, the information should have been going directly to the escrow company. You shouldn't have needed to send anything. The insurance company would bill escrow directly. I think that you may have dropped the ball in assuming that when you sent the information, that it was received and processed. Why didn't you follow up? If YOU were receiving the paperwork, why didn't YOU receive a cancellation notice from the insurance company?

 

[preston77]

that was part of my issue with them as well. i called lexington and asked them why didnt i at least recive something saying it was cancelled and the lady's response was i dont know sir****************************. also, ahm has their own escrow department and why should i have to follow up? is this a common thing to happen?

 

[moburkes]

that was part of my issue with them as well. i called lexington and asked them why didnt i at least recive something saying it was cancelled and the lady's response was i dont know sir****************************. also, ahm has their own escrow department and why should i have to follow up? is this a common thing to happen?

Who is Lexington?

The law requires a cancellation notice.