January 18
To Whom it may concern:
Re: Problems with Ocwen for loan payoff and
Residual payment after they were paid by new loan
We completed a loan with Countrywide to refinance our house on 12/14/06. The loan officer, the escrow Company and I called several times to obtain the correct payoff from Ocwen.
It took weeks to get the payoff from Ocwen and then when they finally faxed it to City Lending Group, the loan rep noticed there was a payment for escrow advance for *. She called me to verify if we were paying our taxes and insurance outside of escrow. I explained that we were paying outside of the lender.
The loan rep, M. Andes, said that it was odd that they would have a payoff for escrow advance. She called Ocwen several times and was disconnected. After several phone calls to no avail, they finally responded when she faxed a firm letter to them. They said the * insurance had lapsed and therefore put into place Ocwen's insurance for hazard and flood.
The loan rep called Kennydale Insurance company (our insurance company) to see if this was true. Kennydale Insurance stated that we had always been covered except for 6 months. Arun, at Ocwen, whom M. Andes spoke to said that we had close to * coming back to us for overpayment of hazard and flood. According to Arun, Ocwen placed a hazard insurance policy in the amount of "..." per year on us and in addition placed a * and *flood insurance policy on us.
According to G. Brown at Kennydale Insurance we were already paying * for flood insurance per year (except for 6 mos.) and * per year for hazard insurance. So, we paid out *between Ocwen and Kennydale for flood and hazard insurance for a $235,000 house.
But it gets better. We found out from Ocwen that when Washington Mutual sold Ocwen the note, Washington Mutual claims because they did not receive the insurance binder from Kennydale Insurance, they placed a *Flood insurance policy also on us before they transferred the note to Ocwen. Therefore, we were paying out the * the *for flood and hazard insurance for the year which comes to *for HAZARD AND FLOOD IN ONE YEAR on a house that is valued at $235,000.
According to M. Andes and her records that she kept talking to Ocwen, they agreed they needed to refund to us approx. *plus interim interest from 12/14/ to 12/29.06. It as been over one month and I called Ocwen yesterday the 17th and they said they sent a check out in the amount of *. This is still short the remainder of the *and the interim interest which would add up to approximately*which would mean a total check in the amount of around *.
We have not received any residual interim interest due us for the remaining 15 days for December (the payoff was through 12/29/06). I spoke to Washington mutual and they said they would refund the *overpayment for flood insurance and they have not refunded that either. When I talked to them 2 days ago they said they sent the check to Ocwen. Everytime M. Andes or I talk to Ocwen their story changes on the amounts.
We are raising 2 children and like most middle class Americans are just making ends meet. This EXTRA money that we have been needlessly paying out could have been used for a savings plan drawing INTEREST or paying high interest rate credit cards.
Please help.
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