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homeowners cancelled - escrow did not pay it

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I am in West Virginia. My home mortgage has been sold four or five times in the past two years or so. I was informed by mail by each mortgage company that all provisions of my original mortgage / loan documents would remain the same. My monthly payment always included principal and interest in addition to escrow funds for homeowners insurance, taxes, etc. Two months ago, I received a letter from my homeowners insurance company saying that the policy was being cancelled for nonpayment and, at about the same time, a letter from the then current mortage company saying that I did not have insurance. I contacted my agent, who assured me that he would handle the problem. A few weeks ago the home loan was sold again. Now the new mortgage company has informed me that because I do not have homeowners insurance they have put an interim policy on the house to cover their losses, not mine, and billed me for this interim policy. Obviously my insurance agent did not correct anything. The original mortgage company no longer exists and subsequent companies tell me that they have acted on the only information available to them. In the meantime, I have been paying escrow funds which have not been directed to paying for the homeowners insurance and which have not been returned to me, I have a bill for interim coverage that I should never have needed, and I have apparently lost an insurance policy that was very carefully prepared to meet specific contingencies, with higher than usual voluntary liability coverages, and riders for valuable collectables, outbuildings, etc. I do not know who to contact for help. Do I need an attorney (and the additional fees associated?) I want my original company and policy back, I don't want to pay for other peoples' errors, and I want to know what has been done with the escrowed funds that have not been used for insurance. Sorry for the length and I would appreciate input.


Senior Member
Unless your house is very large and the insurance VERY expensive, I'd not bother to sue. BUT a letter to the Insurance Department and Banking regulators and HUD, or a letter to the various mortage companies from a lawyer making threatening noises may get you some satisfaction at modest court.

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