Consumer complaint received 2020-11-05
Company: Specialized Loan Servicing Holdings LLC
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Complaint on Specialized Loan Servicing XXXX XXXX XXXX, XXXX  XXXX, XXXX XXXX, CO XXXX Direct : XXXX Fax : XXXX On XX/XX/XXXX I received a letter from my lender 's servicing company, Specialized Loan Servicing ( SLS ), that they received notification that my insurance coverage associated with my investment property had been canceled and the insurance company had advised that the refund had been sent directly to me. SLS stated that in order to avoid an escrow shortage associated with the refund, I needed to return it to them. 

I wasnt informed that my insurance was canceled by the insurance company, so i gave my insurance agent a call. The insurance broker I used is XXXX XXXX XXXX, the agent name was XXXX XXXX, and his phone number is XXXX and email XXXX. 

XXXX then told me that he would handle it and gave me a new policy with the same insurance company that initially said that they canceled my policy a couple of days after closing, the insurance company he used was XXXX XXXX XXXX XXXX. Who I still have a policy with for this property currently. 

I sent the policy information to SLS and received a letter on XX/XX/XXXX stating that that they thanked me for providing evidence of my insurance and they had updated their records to reflect this current information. But they also stated in the letter that their records still showed that there was a lapse in coverage from XX/XX/XXXX to XX/XX/XXXX. They also stated that they were going to place lender placed insurance for a charge of {$1700.00} to my account for the period of time that the coverage was in force and in order to avoid the charges or have it reversed from my account that I had to provide evidence of insurance for this lapse period. On that same day I receivedanother letter from them, With the subject line : second and final notice please provide insurance information for with my property address. This letter also stated that they received the insurance information I provided but were unable to verify the coverage from the above dates and asked me to please provide them with the insurance information for those dates immediately and that I would be charged for insurance for those dates and the estimated cost would be {$1700.00} which may be significantly more expensive than insurance I can buy myself. They were requesting that I purchase insurance for XX/XX/XXXX to XX/XX/XXXX on XX/XX/XXXX. There is no way that I could purchase insurance for past dates. 

When then called SLS on XX/XX/XXXX to to inquire on why I received this notice and second notice in regards to having back dated in-forced insurance placed on my property. the representative, XXXX and then later XXXX XXXX both echoed that the property had to be insured at all times. I told them that I was not aware that I did not have insurance on the property and that they did not notify me that I didnt have insurance and neither did insurance company notify me that the policy was canceled. They then said that during the process of them receiving/transferring my loan from XXXX  XXXX  XXXX, XXXX XXXX The Lender ( XXXX XXXX XXXX # XXXX, XXXX XXXX, CA XXXX, phone # XXXX ) on XXXX representative form SLS stated that they where provided the canceled policy from XXXX XXXX XXXX. So they assumed I was covered, but when it was time to renew the policy, XXXX  XXXX XXXX XXXX said that policy was canceled a week after my closing and that they sent notification to the property address, the insurance agent, XXXX XXXX, and also the previous lender, XXXX  XXXX XXXX  that they had to cancel the policy.Since this is an investment property I did not receive the cancellation letter nor was I notified by the previous lender, XXXX  XXXX  XXXX or insurance agent, XXXX XXXX that the policy was canceled and to seek new coverage before forced coverage would be in placed. The entire time, I thought I had coverage. 


XXXX from Specialized loan servicing gave me a policy number XXXX from XXXX XXXX  XXXX that cost {$1700.00}. This company is a part of SLS. 

On XX/XX/XXXX I received another letter from SLS saying warning notice of purchase of hazard insurance please read carefully action required. It was addressed to me and stated that recently they sent me two notices requesting proof of acceptable hazard insurance coverage for the timeframe referenced above but did not receive it so they placed or bought insurance for the property and charged my escrow account in the amount of $ XXXXIn the same letter they showed the cancellation of the lender- placedinsurance at the same time and still charge me the premium for the lapse period of {$1700.00} and that it was billed to my loan. 

My loan has been transferred twice from the original lender, XXXX  XXXX  XXXX  on XX/XX/XXXX to XXXX XXXX XXXX I with SLS being the servicer, then to the current lender, XXXX XXXX XXXX XXXX XXXX on XX/XX/XXXX, with SLS also serving it. This is when they notified me that I had no insurance on the property.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation