Loan company paid out someone else's insurance from my account

[FlyingRon]

I guess I could always ask - just pay them P&I and be responsible for insurance and taxes. I’ll call and ask them. And no - not able to pay off my mortgage for awhile (sole parent 3 teens one starting college in the fall!)

Yeah, the company I asked was one that insisted at closing I could only get the best rate if I let them impound the money. But they said fine, you do it when I complained about them not making one of the payments timely.

 

[LdiJ]

Yeah, the company I asked was one that insisted at closing I could only get the best rate if I let them impound the money. But they said fine, you do it when I complained about them not making one of the payments timely.

I had something similar happen. I insisted that they stop escrowing for my homeowner's insurance because they could not seem to pay it on time. They agreed, and I paid the late insurance payment myself. A month later they changed their minds and insisted on starting escrow back up again whether I liked it or not. They even went so far as to contact the insurance company and have them refund the payment I made.

 

[FarmerJ]

If you can manage to do so and begin paying your homeowners insurance and taxes your self and far enough ahead that you can argue with a escrow department ( after sending in copies of the reciepts via certified mail) that its already paid and they should refund you and stop collecting it as long as they keep getting bills with zero balance due.

 

[sprinks]

Thank you all! I finally got my money refunded back to my account. I am waiting to hear from Customer Service if I can get out of escrow. They made me write an email. I'll call tomorrow. I like the idea of me prepaying but fear that this company will STILL pay and then I'm out even more funds.

 

[quincy]

Thank you all! I finally got my money refunded back to my account. I am waiting to hear from Customer Service if I can get out of escrow. They made me write an email. I'll call tomorrow. I like the idea of me prepaying but fear that this company will STILL pay and then I'm out even more funds.

Thank you for the update, sprinks. I am happy your money is now back in your account.

I hope you can get the lender’s escrowing of tax and insurance payments eliminated, if you are comfortable making the required payments in a timely manner and you think this is something you want to handle. I know some people actually like having the bank take care of all of that. But that is, of course, only when the bank doesn’t make a mess of it.

 

[sprinks]

Thank you for the update, sprinks. I am happy your money is now back in your account.

I hope you can get the lender’s escrowing of tax and insurance payments eliminated, if you are comfortable making the required payments in a timely manner and you think this is something you want to handle. I know some people actually like having the bank take care of all of that. But that is, of course, only when the bank doesn’t make a mess of it.

Ha ha - I work in finance and am obviously more capable than this company to pay my own bills. I called today and they said I'd know by May 13th (!?!?). They have numerous cases open under my account 1) HOW this happened - which I explained - human error, ok, but the time it took to fix was not ok 2) redoing my escrow - it's still showing the $350 increase coming in May 3) deciding if they'll allow me to close out escrow with them 4) why they paid MY insurance 2 months early. So I guess I'm glad they are now suddenly organized? Again I'll keep you all posted.

 

[quincy]

Ha ha - I work in finance and am obviously more capable than this company to pay my own bills. I called today and they said I'd know by May 13th (!?!?). They have numerous cases open under my account 1) HOW this happened - which I explained - human error, ok, but the time it took to fix was not ok 2) redoing my escrow - it's still showing the $350 increase coming in May 3) deciding if they'll allow me to close out escrow with them 4) why they paid MY insurance 2 months early. So I guess I'm glad they are now suddenly organized? Again I'll keep you all posted.

Updates are always appreciated. Thanks.

 

[FarmerJ]

yes very kind of you to update Thankyou.

 

[sprinks]

Ok final update - and I have to say thank you to all of you. I learned a lot and also was nice to know these things do happen to other people as well.
I finally got a local person to call me - she apologized - had wrong information so I had her update it...said they rushed to redo my escrow and it's been updated as of today. I am unable to pay my own insurance / taxes because I have to have 80% equity, which I don't because I refi after my divorce. She did flag my account for double protection before making any changes to it. If nothing else I now will make sure I check my account online monthly. What a mess, glad it's over (for now).

 

[quincy]

Ok final update - and I have to say thank you to all of you. I learned a lot and also was nice to know these things do happen to other people as well.
I finally got a local person to call me - she apologized - had wrong information so I had her update it...said they rushed to redo my escrow and it's been updated as of today. I am unable to pay my own insurance / taxes because I have to have 80% equity, which I don't because I refi after my divorce. She did flag my account for double protection before making any changes to it. If nothing else I now will make sure I check my account online monthly. What a mess, glad it's over (for now).

Thank you for letting us know, sprinks.

It is always nice to hear positive outcomes.

Regularly checking your account online can help catch small mistakes before they become big messes, so you are smart to start doing that.

And thanks once again for the thanks.