My wife and I have been attempting to re-finance our home that we purchased in 2006. At the time of closing, we had our Taxes and Homeowners Insurance compounded into an Escrow account. Our mortgages were paid each month under the impression that our taxes and insurance was as well.
Suddenly this past week 9-27-07, we received an urgent phone call from our Insurance Agent (Farmers Insurance) that our homeowners policy was cancelled and we had no coverage. Upon research, Homecomings Financial stated that we did not have an Escrow Account set up and that at closing, we paid for only 1-years worth of premiums. I am in possession of a final HUD-1 Statement which clearly shows that the account was Escrowed with 3-months of reserves for Insurance and 7-months of reserves for Taxes.
I promptly brought this to their attention and they stated that they would open a "Work-Order" up and investigate on 9-27-07.in the mean time, they offered that "WE" set up our own Homeowners Policy to provide coverage for our house and belongings. This at a cost of over $800.00 to us to pay the first year of premiums with our insurance.
Homecomings spent two days on the phone with me and still cannot find the HUD-1 in their files. Their comment was that if they do not see a HUD-1, they assume that there is not Escrow set up and thats why they cancelled us. Having been the victim of this already, from... Homecomings Financial in... April of this year.
I have put in a call to the Attorney Generals Office in Seattle Washington and I will be filing a report with their office and the BBB if they are registered. Since the cancellation, we have had an attempted Burglary to our home while our grandson was home. I filed a police report for this. I feel that there is Gross Negligence on the part of Homecomings as they have placed my family, my home and our valuables at risk. We would love to hear from an Attorney who may be working on a class action suit already.
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