Consumer complaint received 2023-09-06
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: SIERRA PACIFIC MORTGAGE (CA)

We have a XXXX lot with a primary residence. We have a homeowner 's policy through XXXX XXXX that is both XXXX  and XXXX XXXX. We have a separate flood policy through XXXX XXXX. The loan on our house is for the primary residence, a XXXXXXXX XXXX, and XXXX metal buildings. Those were the structures when we purchased the home and secured the loan. Since purchasing the home, we have added a small XXXX for our XXXX XXXX  kids in XXXX. We constructed this with cash and no loan or equity from this property. We only have a first loan from XXXX ; no second and no XXXX. That XXXX has a separate landlord policy through XXXX XXXX. XXXX XXXX erroneously sent the policy for payment to Sierra Pacific Mortgage when it was first added, and its been a nightmare from the point to get this resolved and the escrow/insurance department to understand the the above. 

We called Sierra Pacific and explained it was sent in error, but they said it was already paid. My husband and I, as well as our insurance agent office ( XXXX - XXXX XXXX XXXX, have called over ten times over the past year and a half to try and get this resolved and removed as a requirement on our account. During this time, we keep getting policies such as flood, hazard, and wind added to our account. Even more unbelievable is that the premiums for flood, homeowners, and the landlord policy on the XXXX are being paid from our escrow account. Yet, the insurance division of Sierra Pacific Mortgage keeps adding various policies to our account, such as additional flood and wind/hurricane coverage. The documentation is within their system, but no matter how many ways we or our agents explain, the content is too complex for anybody in the insurance department to comprehend. There was XXXX issue with only my name being on the policy, but that was corrected to add both of our names, and proof of correction was sent. 

Our house payment is over-inflated, and there is no remedy or mechanism to get this resolved through Sierra Pacific Mortgage Company. The straw on the camel 's back is the wind policy recently added to our account this past week. 

We should only be required to pay out of the escrow account for coverage for what is secured by the loan, which is homeowners ( that includes our ag liability coverage ) and flood insurance on the primary residence. I'm unsure why wind coverage or other flood policies keep getting added. The lender shouldn't require anything related to the XXXX  or be adding insurance policies for flood insurance on the XXXX. We maintain coverage as required by our loan. Still, we are suffering from damages of overcharges and unnecessary policies being added to our account, which costs us in the form of increased mortgage payments and loss of time trying to resolve this. I have tried to escalate within XXXX mortgage to no avail. We have continued to make our payments as requested, but this must be resolved, which includes our escrow account being audited, credited for overcharges, and assurance that this is fixed for good. 
We spoke to an attorney who advised that our first step was filing this complaint and then following up with her if it couldn't be resolved. 

I have attached proof of homeowners and proof of flood for the primary residence I have also attached the tax assessment for the XXXX, which was a permitted owner build. The assessment is based on the cost of construction materials. I also attached he XXXX  policy even though this shouldn't be required by lender.