Anyone have this happen w/ escrow?

Discussion in 'Credit Talk' started by sirrowan, Aug 5, 2003.

  1. sirrowan

    sirrowan Well-Known Member

    Here goes:

    In April on 2002 closed mortgage loan. I paid the first year's homeowner's insurance upfront before closing (like a good girl). I acquired insurance through Ohio Fair Plan.

    In June 2002, I received a letter from Ohio Fair Plan saying that the ACTUAL annual premium was $221 more than what I paid before closing. My Escrow paid the $221 to Ohio Fair Plan, no questions asked.

    By November of 2002 I sought insurance elsewhere. I acquired a homeowner's policy that was a real policy for about $225 less than Ohio Fair Plan.

    My agent faxed a copy of the declaration page, along with the bill to my escrow. Simultaneously, Erie, my new insurance company, mailed a copy of the same material to my Escrow agent.

    Long story Escrow didn't pay my insurance until July 17, 2003 at which time my policy was irreverseably cancelled. I spoke to them on July 7, 2003 and they said they would overnight the payment to Erie. All they had to pay was $404 less $257 (refund from Ohio Fair Plan signed over to insurance agent and applied to policy).

    The money was there to pay this, period. They paid $403 on July 17, 2003 to Erie who in turn sent a check to me.

    I don't have insurance!

    The customer service supervisor at the Escrow department was supposed to call me back LAST Monday within 24 to 48 hours. It has been over a week now.

    Would it be safe to say that they are looking for reasons that would not make them liable for this?

  2. jlynn

    jlynn Well-Known Member

    Bottom line, I would take the $404 and get homeowner's somewhere today...then deal with escrow.

    I know they forgot to pay my taxes one year, they had to eat the penalties.

    Maybe you could show damages if the new policy is higher?

    I don't know about homeowner's but auto insurance is more expensive if you have been uninsured for over 30 days, time may be important here.
  3. sirrowan

    sirrowan Well-Known Member

    Oh yeah, talk about damages!

    I didn't know until Last Monday (July 28, 2003) that I didn't have insurance.

    The check was supposed to be overnighted to Erie insurance to reinstate my policy. I assumed (ok..shoot me) that my insurance agent would follow this through (like they hadn't the other three times?<-this is my alter ego speaking to me).

    My insurance agent quoted me a new annual premium that was 37.6% HIGHER than the other premium.

    I also called other agents, and they quoted me premiums that were significantly higher than my original premium.
  4. sirrowan

    sirrowan Well-Known Member

    Oh yeah, when my agent quoted me the higher rate I asked him to go ahead and write the policy because I needed something in place. He said that he would check with other insurance companies to see what their rates were. I have never given him permission to inquire into my credit reports. Erie Insurance is the only company in Ohio (to my knowledge) that doesn't do credit reports to write insurance policies. I'm thinking that if he made an inquiry into my credit report, that he would be in violation (I certainly hope so!).
  5. sirrowan

    sirrowan Well-Known Member

    I just got off the phone with a different insurance agent who writes policies through Erie. He says that he can't write me a policy until the siding is fixed on the fire place (it is loose). This guy says that it must have been like that for years because the wood is rotten and everything (yeah, yeah, yeah). He recommended a SPECIFIC construction company.

    Isn't anyone honest anymore....

    I am talking to myself.....
  6. too much

    too much Banned

    Unfortunately, your "damages" would be impossible to prove, since most of it apparently occured on the phone, and you have no proof of the conversations.

    Remember, it's your responsibility to insure your home, regardless of who (the escrow company) makes the payment. I'm not saying that you're at fault, just that you are the one who needs to ensure that it's paid, and that the policy is in force.

    Consider it a lesson learned the easy way. Luckily, your house didn't burn down last month.
  7. sirrowan

    sirrowan Well-Known Member

    Re: Re: Anyone have this happen w/ escrow?

    My money is REQUIRED to go into ESCROW. Escrow is supposed to pay my insurance out of the money that I put into escrow. THEY screwed up. You are correct. I will not use my escrow account to pay this year's insurance. And next year, I am going to bug the hell out of them are REQUIRE proof from them that they paid my insurance.
  8. too much

    too much Banned

    Re: Re: Re: Anyone have this happen w/ escrow?

    You're misunderstanding what I'm saying.

    It doesn't matter who writes the check, it's up to you to ensure that you have a valid policy in effect. You cannot take the word of someone on the phone(obviously).

    Never assume you have insurance unless you have a valid paper policy sent to you. Without a paper policy in hand, you have zero proof of insurance.

    GEORGE Well-Known Member



    Put the INSURANCE FIRST!!!

    Worry about REPAIRS LATER!!!
  10. GEORGE

    GEORGE Well-Known Member

    WHAT'S NEXT???

    HEAT AND A/C???



  11. sirrowan

    sirrowan Well-Known Member

    Re: Re: Anyone have this happen w/ escrow?

    He actually told me a name of a construction company. He said it was in the phone book.

    I'm so mad!
  12. lbrown59

    lbrown59 Well-Known Member

    Same with homeowners.
  13. too much

    too much Banned

    Re: Re: Re: Anyone have this happen w/ escrow?

    Yes, and ignoring his advice is so hard to do.....

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