My first mortgage loan was recently transferred to Chase Home Finance, LLC. This was not my choice. It was previously satisfactorily serviced by Coldwell Banker Mortgage for the past five years. I found out by accident that Chase Home Finance had purchased a secondary coverage flood policy on my home without my knowledge in order to obtain a nearly 100% increase in the amount of required flood insurance coverage I have on my home. I will not bore you with the details of how I discovered this unpleasant surprise.
I owe approximately $63,000 on this home, which is located in a high traffic area. We have also seen local taxes increase, property values reassessed and increased, and a local school tax added. Needless to say, we are finding it harder to make ends meet. My husband has been ill and is laid off, so I am the sole earner in the family. My previous mortgage servicing company, Coldwell Banker, only required I keep minimum flood insurance coverage to cover what was owed to the Bank. I also have a second home equity line of credit through Fifth Third Bank, and they have a similar coverage requirement policy as Coldwell Banker did.
Chase Home Finance, LLC has verbally informed me, upon my call to their office, that I must carry flood insurance coverage equal to almost $120,000! I have a letter from Coldwell Banker Mortgage stating that the terms of my loan will remain unchanged upon transfer to Chase Home Finance, LLC. I am wondering if Chase Home Finance, LLC is within their legal right to force me to carry this much flood insurance. I will never be able to sell my home for this much and certainly would never rebuild it in this location. I feel that they are taking advantage of me and are finding new ways to fund FEMA, with whom they are connected in regard to distribution of FEMA payments to victims of flooding (such as Katrina).
I would greatly appreciate any feedback from anyone who may have knowledge of my legal rights. I am planning to shop around for a new mortgage company, even if it costs me a new application fee. Chase Home Finance, LLC has made my house payment unaffordable and is contributing to increased debt for me. I now cannot afford to pay a little extra toward my escrow for the other rising taxes, nor can I whittle away at my principal.
Thanks for reading my report!
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