Consumer complaint received 2021-12-02
Company: Mortgage Research Center, LLC
State: SC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
On XX/XX/XXXX, or thereabouts, we closed on our home in XXXX XXXX, SC. At closing we paid for an annual home insurance in the amount of {$630.00} to be paid to the insurance company. 

Upon receiving this letter, my husband contacted XXXX XXXX on XX/XX/XXXX, the policy holder and discussed the declaration page that they were paid {$630.00} for the policy. They stated they never got the check and the policy was canceled on XX/XX/XXXX for non-payment. We immediately called the lawyer 's office that did the closing on our house and asked about the payment that should have went to the insurance company. They replied that the check was sent but never cleared their bank. We asked where the money was and was told in was still in the attorney 's escrow account. We asked for them to send it to us because we felt the money at that point belonged to us. Hesitantly, the law office did send us the check. 

On XX/XX/XXXX we contacted our insurance company and told them we needed insurance now and that day we paid for it through the escrow money from the lender and obtained a policy. 

On or about XX/XX/XXXX we called mortgagor to let them know we have insurance and provided the insurance policy number to be sure they knew we had insurance and to inquire if there was anything else they needed. We were told No. 

XXXX days later we received confirmation that we had insurance on the house but at a higher price because of us letting the insurance policy lapse. 

The mortgagor told us that they sent us a letter regarding this issue in XXXX of XXXX telling us we were uninsured. NOW, at this point, please check the dates. Its impossible they contacted us. We told them we never received this letter and they said they had proof they sent it. 

A second letter from the mortgagor came dated XX/XX/XXXX stating the same thing. We called the mortgagor to inform them that there was insurance on the house. 

The third letter from mortgagor, dated XX/XX/XXXX, stating that the house was not covered from XX/XX/XXXX through XX/XX/XXXX. In addition, the letter stated " that an insurance charge of {$1500.00} MAY be charged to the account for the period of time that the coverage was in effect. '' The letter states that to avoid this charge or reversed from the account please provide us with evidence of insurance for this lapsed period. 

We immediately contacted XXXX  to let them know we have insurance and provided the policy number for a second time. 

On XX/XX/XXXX we sent email to XXXX questioning whether or not they logged our information that was previously submitted regarding our updated insurance and whether they have fixed the tax issue that we had with them ( nightmare ). 

We received another letter dated XX/XX/XXXX. They state that they now have received the insurance information we provided but unable to verify coverage from XX/XX/XXXX to XX/XX/XXXX. Please provide us with insurance information for that time period and send the info immediately. Ask your insurance agent to fax a copy of your new/renewal or notice of reinstatement policy with the loan number, property address and mortgage clause/lender 's loss payable endorsement asap. " We will charge you for insurance we plan to buy for the above dates unless we can verify you have insurance coverage for the same above dates. Our insurance plan will cost an estimated {$1500.00}. 
This letter was received on XX/XX/XXXX. 

We again called the XXXX and again explained we had no idea what was going on and did not have the {$1500.00} in the XXXX days they gave us to pay it. During that call we objected as we felt the XXXX didn't even know that our insurance lapsed until they went to pay the premium for this coming year. They stated that they had an insurance company who would do this and that they would back date the policy to meet the dates and we will pay for it. They even told us to contact our insurance company and see if they would do a back dated policy and our insurance company said no, and that they didn't know of any insurance company that would do that. During the conversation we were told we were notified by letter sent to us by XXXX notifying us of the lapse insurance. PLEASE CHECK DATES FOR CONFLICTION. We weren't canceled on XX/XX/XXXX, so why would they send us a letter on XX/XX/XXXX?? 

POINTS MADE : XXXX. Lawyer should have followed up on the non-cleared check and made sure the insurance was paid. 
XXXX. The insurance company should have called us regarding non-payment and cancellation. 
XXXX. The mortgage company should have call us and let us know. They told us when we asked about a phone call, " it is against the law for us to call you regarding our insurance lapsing.??? 
XXXX. They do have a clause in the contract ( as all lenders do ) that if you don't keep insurance you end up paying for a policy that the mortgagor picks. Again, we thought there was insurance on the house. We have never went without house insurance. 
XXXX. Our insurance on the house was XXXX annually and they want {$1500.00}, exorbitant. 
XXXX. When we asked who gets the {$1500.00} they stated the XXXX gets it. Who is XXXX? 
XXXX. XXXX nor us, knew there was no insurance on the home until XXXX of this year when they went to pay our insurance company for a policy that had been cancelled. 
XXXX. Why are we paying for insurance for last year when they never wrote a policy, never billed and never notified us of this issue and now they want us to pay for their mistakes. 

Keep in mind, we were left out to dry. If something had happened during the time we were not insured, we would have had a XXXX XXXX and probably never have recovered. We are in our late XXXX, living on a limited income and we have to deal with this kind of stuff. 

All Documents will be sent by mail as we have no way of downloading and sending via internet. Sorry

Company response to consumer: Closed with explanation