Product: Mortgage

On XX/XX/XXXX a tree from my yard fell over and crushed the neighbors car, estimated repairs are XXXX. I read my homeowners policy and it states this kind of accident is covered by my Insurance. 
I called my insurance company to place a claim, gave them my policy number and was told that my policy was cancelled in XX/XX/XXXX for non payment. I told them it must be a mistake because my insurance is impounded so the lender was responsible to pay the premium that was due XX/XX/XXXX. 

I immediately spoke to a gal named XXXX at Gregory Funding, my loan servicing company. I asked her if they had paid my Insurance premium to XXXX XXXX In XXXX. She told me No, they had a new company policy that went into effect in XXXX, they were no longer going to be paying individuals Homeowners Insurance premiums. 


I was completely shocked. I asked her why I was never notified? How can a servicing company change the original terms of my loan just because they don't want to do something anymore? How come if my taxes are XXXX a year, which would be only XXXX a month, were they collecting XXXX for impounds every month? And why did they send me a letter a few months ago that stated XXXX XXXXTax payment {$5500.00} and XXXXHazard - Liberty Mutual {$1700.00}? And ... .any reasonable person would assume if I didn't have any XXXX XXXX in place, the lender would be calling me or placing forced insurance on me because they have just as much, in fact more to lose than I do if something happened, house caught on fire.. anything. In doing so, I would have at least had some knowledge that I haven't been insured and I would have gotten insurance. And now that I find out I wasn't covered and no insurance company is going to cover the cost of my neighbors repairs, They are going to expect me to come up with the money to repair their car and since I don't have it, they will of course sue me and I will have to pay their attorneys fees also ... AND THIS ISN'T MY FAULT! 

Her response was that they mailed me a letter in XX/XX/XXXX informing me that it was their new company policy to no longer pay Insurance premiums. I told her I never received any notification of any kind regarding my Insurance was not going to be paid. She said.. well it says right here that we sent you one. I said to her.. something as important as Hazard insurance and you just popped me a letter in the mail, it wasn't federal expressed, certified requiring a signature so You would know I received it, just sent regular mail? And she said Yes, regular mail. I asked her to send me a copy of the letter.. its been over a week and I still don't have a copy of the letter they claimed to of sent me! 

I also asked her what happened to the overage in my escrow impound account from the first year I obtained this modification loan. They impounded for a insurance premium of XXXX but the premium was only XXXX. The servicing company at the time, XXXX XXXX said they would refund me {$1800.00} ( which I think it should have been {$2000.00} ) rather than send me a check I requested they apply it to my next months mortgage payment. The following month my loan servicing was switched to XXXX XXXX. When I notice they were showing my account 30 days late I contact them and they said they would check into it and get back with me. I still have never received a check, a call, a credit.. nothing in regards to that money still owed me! 

Gregory Funding 's response was .... I would need to take it up with the servicer before them! The impound analysis is all they can go by. I said.. its easy enough to prove.. see how much XXXX XXXX impounded for my taxes and Insurance the first year, see how much they paid out ... its easy to figure there was a substantial overage left. If the servicer claims they refunded that money already, then provide a copy of the cancelled check ... which they can't do because a check was never issued or cashed. Was my payment credited : NO. SO WHERE IS THAT MONEY? Forget what the analysis says.. JUST DO THE MATH. This has been a ongoing frustration for me and every month I accrue more late chargers all stemming from money owed to me! 

It has always been my understanding, that when the servicing of your loan changes to another servicer, nothing should change for the borrower other than where and to whom they pay their mortgage payment .... this clearly is not true! 

I then contacted The Making Home Affordable hotline and asked them on my particular kind of HAMP gov. loan ( the 2 % adjustable one ) was having my taxes and insurance impounded every month a requirement for the entire term of the loan and he said YES! 

With this knowledge and all the other reasons stated above, any reasonable person would be safe in assuming they had Hazard Insurance in place! 

Please help me! I am completely panicking ... should I contact my attorney? Contact the XXXX XXXX XXXX? Contact XXXX XXXX XXXX  who is the actual lender on my loan?, The US Department of housing or could you tell me who can help me regarding the Dodd-Frank Act. or maybe I should contact XXXX XXXX XXXX team? I don't  know who to call or whose dept. this falls under .... But I do know, this is so wrong and I can only imagine how many people out there have been screwed over when their servicing changes and there is nothing they can do about it! 


Any help you can give me, would be greatly appreciated!