Consumer complaint received 2018-06-06
Company: PLANET HOME LENDING, LLC
State: NJ
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Planet Home Lending , LLC ( PHL ) is trying to foreclose on my home by illegally paying my homeowners insurance in order to keep my mortgage payments high. I am currently paying a deficiency in my escrow, from my previous lender, that I will be done paying by XX/XX/XXXX ( see attachment 1 and attachment 2 ). My current mortgage payment, including the current escrow deficiency, is {$2800.00} ( see attachment 2 ). After the escrow deficiency is covered in full, by XX/XX/XXXX, my mortgage payment will return to {$2500.00} ( $ XXXX {$310.00}, see attachment 2 ). A decrease in my monthly payments will make my mortgage more  affordable. On Monday XX/XX/XXXX I received an annual escrow account statement disclosure sent by PHL ( see attachment 3 ). In the escrow statement, PHL lists homeowners insurance as one of the escrowed items ( see attachment 3 ). PHL has changed the terms of my mortgage by adding homeowners insurance to the escrow. My previous mortgagee did not include homeowners insurance as an escrowed item. I tried to address my concerns about the escrow to the PHL escrow department, but the department does not have a contact phone number for consumers.

According to PHLs own statements, in their documents, paying for my homeowners insurance and adding the balance to my escrow account is completely illegal. PHL has the following policy, with regards to Hazard/Homeowners Insurance : To protect our mutual interest, Planet Home Lending , LLC must be named in the mortgagee clause. Please keep in mind it is your responsibility to maintain proper and sufficient hazard insurance coverage as well as flood insurance where required. Failure to maintain and provide PHL with evidence of insurance prior to the expiration may result in us obtaining coverage to protect our interest ( see attachment 4 ). I have maintained proper and sufficient hazard/homeowners insurance coverage for my home ( see attachment 5 ). My homeowners insurance is active and will be automatically renew for the upcoming XX/XX/XXXX-XX/XX/XXXX term, because I have automatic bank withdrawal for the payment to the insurance company ( see attachment 5 ). My homeowners insurance has never been canceled or interrupted. PHL adding the homeowners insurance to my escrow is absolutely illegal.

PHL wants to illegally take over my homeowners insurance payments as a tool to increase my mortgage payments and foreclose on my home, which is PHLs ultimate goal. If PHL is allowed to illegally take over my mortgage payments, this will be the beginning of the end the ownership of my home. PHL wants to pay for my insurance in order to increase my escrow account so that a new deficiency, that they will create, will be added to my mortgage payments ( see attachment 3 ). If PHL illegally pays my homeowners insurance, my mortgage payments will remain above {$2800.00}, indefinitely. If PHL illegally takes over my homeowners insurance, they can also decide to let the current insurance be canceled and then select the most expensive insurance possible, in order to further increase my monthly mortgage payments. It is my understanding that there have been similar complaints about this company, which is why I am very concerned. PHL amended my insurance policy ( see attachment 5 ) and PHL included the homeowners insurance premium in the escrow statement ( see attachment 3 ), without notifying me before making these changes. Customarily, if there is any problem with the homeowners insurance, the lender will notify the homeowner to correct the situation. If the situation is not corrected, then the lender can take action. PHLs actions with my escrow account are evidence that PHLs sole purpose, with my mortgage, is to foreclose on my home.

Company response to consumer: Closed with explanation