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What can i do about my mortgage company adding and charging me for homeowners insurance when i already have it?

What can i do about my mortgage company adding and charging me for homeowners insurance when i already have it and showed them proof. I got my loan modified and my mortgage company asked for proof of homeowners insurance, which i had and was paid in full for a year. I submmited proof numerous times and they didn't except it. Finally the last time i submitted proof i didn't hear from them. So when it came time to make my first payment after my mortgage was modified i found out that they where adding on homeowners insurance even though i already had it on my property. I got help from a foreclosure specialist and they got my payments lowered from $2,300 to $1,700 per month but right before i went to make my first payment to my mortgage company i called the people who were helping me with my modification to confirm the payment amount and at the last minute they tell me that instead of $1,700 its now going to be $2,247 because my mortgage company added H.O.I to the payment. I told the guy thats rediculous isnt that against the law for them to do that and i asked him what i should do and he said i should just pay it. Which i couldnt. I did make about 5 payments until i just couldnt do it anymore. So now i'm losing my property again i already recieved the notice of trustee sale. I really had my hopes set on that $1,700 a month. I signed a contract between me and my mortgage company stating that i the owner of the property would be responsible to pay the property taxed and the homeowners insurance on my own. That modification was back in march of 08. I really dont know what to do or who to talk to. I dont know if a foreclosure specialist is the people who i need to be talking to. I am the first person in my family to own a property and this is the first property i have owned and i'm very young and naive as you can see. So what should i do who should i talk to? By doing research I also found out that my mortgage company has class action lawsuits against them for this same reason. I also know i should talk to a real estate lawyer but how do i find one. Just open the yellowpages close my eyes and point??? Its so frustrating!!! Its so complicated for the average person to understand whats going on and how things work. You need to take real estate classes just to own a house just to know whats really going on and what your getting yourself into. Any advice would be great thanks....and i live in the state of california by the way. Dana R that is exactly what i did!!! They didnt except it!!! And i am sure that its homeowners insurance not PMI! That is why they asked me for proof they wanted updated proof which i gave to them. As a matter of fact i had just paid my H.O.I and for a full year at that. After submitting the decleration of insurance time after time i finally asked the insurance company which is farmers and asked them to fax it themselves and they did but the mortgage company still didnt except it. And my rep from farmers even said that something doesnt seen right and its really fishy that they dont want to except it! I did my part it the mortgage company whos messing with me!

Public Comments

1. They won't forclose on you for not paying the home owners isnurance. Just pay the regular payment amount. You need to talk to someone specifically at the bank/lender that you are paying and make sure you get someone at the right department. Explain to them that your policy is paid in full for the year. You might have to call your insurance company and get them to send you a copy of the declarations page which lists the lenders name and address and then proof of coverage. Then your lender can give you a fax number to send this information too. They should credit you for it and for the money you have paid. I had to go through this and I never even modified my loan! Good luck!
2. Are you sure you are not talking about PMI. Private Mortgage Insurance, instead of Homeowner's insurance? If they are collecting homeowners insurance they should have that in escrow and when it is time to pay your insurance the insurance company will tell them it is already paid, and you should get a check for that money they withheld... IF it is PMI, you don't get anything back, and it is tacked on to the payments until the value of the house is 20% higher than the loan amount. However, you should have had this explained to you at closing and on your "Truth in Lending" statement when you applied for the loan.
3. contact your local attorney generals office and the banking commission?