I have had three loans with Countrywide home mortgage lender. The first one was assumed from another company and I got a second mortage. Later, I merged the two into another single loan.
I was told by the people processing my loan that hurricane insurance is not mandatory and that was a major considering factor in my decision to get the loan with Countrywide. The wind and hazard insurance with Allstate was satisfactory.
Because I have equity in my house, Countrywide sends me between five and ten peices of mail monthly trying to get me to refinance my home. "Urgent letter from your mortgage company." I saw so many of them! It got to the point where I just made sure that my payments were on time via the internet payment option and I viewed my information there.
Upon getting this last loan, I was enticed by their offer for a $250K loan with a payment of $750 a month. I asked them about this specific offer and they told me that it wasn't available anymore. As I closed the loan, right before signing, I received the same offer in the mail. Kind of pissed me off.
So, just recently, I got another one of their junk mail offers and for the sake of it, I called a sales rep on the 800# to see how much they're not agreeing with the offer.
The sales rep.informs me that there is a $3200 dept on my mortgage insurance and starting in April I'll be charge an extra $600 a month on my monthly payments because they forced hurricane and hail insurance on me. That would bring my payment from $904 to $1600 with taxes and my other insurance included.
Hurricanes have never hit the East side of Hawaii, they always veer to the South or North of the Island because of two 14,000 foot peaks that rise within 10 mile of the coast. And Hawaii does not have hail. AGAIN! The Hilo has never been hit by a Hurricane and my wind policy is covered for any hurrican that is downgraded to a tropical storms which we do get, even out of hurricane season. My house is still here.
I told them that they should have called me, written a registered letter or emailed me with such a major change in my policy but they didn't. They say they mailed a letter which didn't get my attention because of all the crap they send.
I signed the contract with sufficient wind and hazard insurance and now they are ripping me off by making me pay for insurance that I can purhase at 1/12 the cost if it was necessary.
I called them three time and couldn't get a response. One call my Italian wife got but she said they rattled off the number to call back faster than she could write. I called back, I emailed them I and would like to talk to their legal department if I can get past the screening.
Ironically, I spoke with my Allstate insurance agent about this and he said that Countrywide tried to do the same thing to him after his loan was purchased by Countrywide. He successfully argued his point.
I'm looking to refi with a different lender. I sure would like to see them pay me back what they are going to take "extra" when I payoff their loan.
I hope that this interests you on a "class" side as I hardly have enough to pursue this individually.
Countrywide sucks! And I will do my best to let as many people know as I can.
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