Agent

Homeowner seeks recourse against aloof loan servicer

Late insurance payment gets policy cancelled
Published on Aug 11, 2004

DEAR BOB: What recourse do I have against my new mortgage loan servicer who failed to pay my homeowner's insurance on time from my escrow account funds? When my loan servicing was transferred, I contacted the new loan servicer to be certain my insurance would be paid on time out of my escrow account. To make a long story short, after numerous requests by my insurance agent and myself, the new loan servicer eventually paid but only after my insurance was cancelled and had to be reinstated. I am furious. As a homeowner, what recourse do I have against my new loan servicer? – Roseanne S. DEAR ROSEANNE: I don't blame you for being very upset. There is no valid excuse for a mortgage loan servicer ever failing to pay property taxes or insurance premiums on time from the borrower's escrow account. Purchase Bob Bruss reports online. Unfortunately, there is no practical recourse against your defaulting loan servicer. You didn't suffer any monetary damages so taking the loan servicer to...

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