Previous to ASC:
My wife and I had our new home owner's mortgage sold to Fairbanks Capital two years ago. At that time, we did some research into this unknown company and found out they were a sub-prime lender with predatory tactics.., meaning they will find anyway possible to force their mortgagees to pay additional fees through unscrupulous methods, such as misplacing checks and forcing hazard insurance on residence already with hazard insurance. We also were aware that Fairbanks was under investigation and ultimately lost a class action lawsuit.
Enter ASC:
We were all set to refinance and get out from under such a mortgage company, when we were notified that our loan was sold to America's Servicing Company (ASC). What a relief we thought and we did not refinance at that time.
After a year with ASC however, in December of ASC finally appeared for what it was, a unscupulous company. We got a letter from ASC stating that they had insufficient Flood insurance data on file and that I submit such data. They did not however state that I "needed" flood insurance, simply that they did not have a record of my home flood insurance.
I replied to them via phone, fax and by mail that our home was not in a flood zone, as is determined by FEMA. Per our certified flood evaluation we received when we built our new home in our home was in Flood Zone X'. Flood Zone X' is defined by FEMA as a non-flood hazard area.
But just to be sure the FEMA maps were not re-drawn since our home was built, we had State Farm do another evaluation on our flood zone category. We received the second evaluation on Dec 20 which confirmed our first evaluatoin that our home is in Flood Zone category X'.
I sent this backup documentation data to ASC. I also called them on the phone to tell them that I was not in a flood zone. After waiting nearly 20 minutes, the ASC customer service operator stated that the maps had been redrawn. I stated that this was not correct and that I had just had a determination done a few days ago which I faxed and mailed to them. I then asked the agent to send me the documentation that ASC possessed requiring flood insurance. She then HUNG UP on me!
To date, I have not received any documentation from ASC stating whom they are using to cover my flood insurance. I am confident that this is fraud and that any additional money they collect for this unnecessary flood insurance is going straight into their profit pockets.
As a matter of fact, State Farm has informed me that by Virginia State Law, a home designated by FEMA to be in a Flood Zone X' can not have flood insurance applied (to prevent such fraudulent claims by mortgage companies). They told me it is an illegal action.
However, a week later (this past week) we got our 2005 estimated escrow account projection showing $407.04 for additional flood insurance.
We have already begun refinancing our loan with another bank and will be out from under the unscrupulous tactics of ASC very soon, however, the whole episode is very disturbing that it is so simple for a mortgage corporation to illegally force a mortgagee to pay unnecessary fees. And that the mortgagee has little recourse.
In our case, ASC's actions are more than simply unethical they are illegal and opens the company to being sued in criminal court (vs. What happened to Fairbanks Capital). I believe that their tactics will ultimately backfire on them, because they can now be criminally liable for such tactics.
Even though we are refinancing as I recommend everybody currently with ASC to do as well. I can not let this go. I am conferring with our real estate attorney on the illegal action, I am writing to the Virginia District Attorney and I am contacting the Better Business Bureau.
Scott
mechanicsville, Virginia
U.S.A.
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