Wise men of Chiefsplanet

[Nirvana58]

I need help with a problem with my mortgage company. I bought a house 6 months ago getting my loan through sunflower bank. Who then promptly sold my loan to BB&T. My house require flood insurance (which is stupid in its own right..... Hurry up FEMA and release your new flood maps). Anyway, the loan documents I signed with sunflower state I have to have flood insurance that covers the principle amount of the loan. (Which I do). Now BB&T is saying that I have to have replacement cost for building a new house and saying I need to be covered for a god holy amount that there is no way I can afford. They say if I don't purchase it they will and charge me more. I don't know what to do here. I need the wisdom of the wise men and women of chiefsplanet.

[Iowanian]

Banks are like a piece of ass.

You were looking for one when you found the one you're in, but there are others around.

See if you can resolve it, then start looking for another bank to refinance the loan. It may cost some money but if it saves you $$ for insurance in the long haul that's what you do.

You're not in a well and they aren't buffalo bob.

[htismaqe]

Originally Posted by cdcox

I took this don't-back-down-approach with an insurance company and after about 3 hours on the phone, they decided it was easier to give me benefits that I might not have been entitled to than to keep arguing with a guy that probably wasn't going to give up. I probably kind of freaked them out, but given it was a health issue I was all in.

I also used the written approach to get out of an illegitimate back taxes bill that the IRS sent me in the 1980s.

I have a couple people that work for insurance companies and they assure me that it's common practice to deny X number of claims using "technicalities".

They figure only 10% will fight back - those 10% almost instantly get their claim paid. The other 90% just gave the insurance company free money...

[underEJ]

Get a new loan now. This is a recurring problem now with mortgages. They sell them to anyone and I kept getting sent to shady loser companies. They make extra money by making it nearly impossible to comply with your loan agreement by making loan changes nearly monthly, and they have a reputation for screwing over military families as well who struggle to keep up with change notices during deployments.

Go to a bank. Wells Fargo, so far, has never sold my CA house mortgage, and UMB is where I went most recently for my KC house, and they say it isn't likely they would sell it. My rate is slightly higher than the original, but I'm happier without the fines and extra insurance, or the 20 dollar payment fee one place required to pay online (they kept holding my checks until after the penalty date, and wouldn't sign for a registered mail delivery of a payment.) They also did an escrow analysis and sent me a bill for 1800 dollars for bullshit estimated shortages, to be refunded if it wasn't needed, something they apparently have a right to do during the first year of loan servicing. Basically they get a big interest free loan from all their mortgage holders for a year.

[crossbow]

refinance and move on but making sure you bad mouth these aholes to anyone that will listen.

[cosmo20002]

Originally Posted by Nirvana58

Honestly after wasting my day argueing with BB&T I feel like hitting something. Ask for a supervisor they kept giving me the run around. Said I could leave a message and they will call me back in the next week. What the hell are they doing just sitting in back counting all the money they are robbing from hardworking people.

I could be wrong, but I don't think the mortgage company can force you to insure for an amount greater than what you owe them.

Before getting involved with an attorney that you'll have to pay, ask them to show you what is forcing you (a law? a term of the mortgage agreement?) to get the amount of insurance they are requiring.

[Nirvana58]

Update:

I finally got a hold of a BB&T supervisor. He basically told me that I was screwed and had to abide by the requirements. He told me in section 5 of page blah blah I signed a document stating basically that once Sunflower sells my loan that the new lender can change my mortgage agreement if it doesn't fit their requirements. That is contrary to every document I found in my agreement stating that my mortgage agreement wont change in anyway. (Also letters I recieved from BB&T) Also a signed document stating I only have to have the principle balance of my loan covered in flood insurance. I have called Sunflower stating they need to make this right and that is pretty decieiving tatics to let whoever buys my mortgage have the power to just change our legal agreement. I have also requested the document from BB&T that I supposedly signed. I know a real estate attorney that I am going to see if I can get a free consultation. I am also thinking about refinancing with another bank and just telling BB&T to **** off. (just sucks repaying all closing fees again but now its turning into the principle) I can't believe banks can get away with type of bullshit.

[ptlyon]

Good luck man, hope you can get things right.

And remember, if anything needs to be, eh, "handled", Rain Man is a mercenary.

[cosmo20002]

Originally Posted by Nirvana58

Update:

I finally got a hold of a BB&T supervisor. He basically told me that I was screwed and had to abide by the requirements. He told me in section 5 of page blah blah I signed a document stating basically that once Sunflower sells my loan that the new lender can change my mortgage agreement if it doesn't fit their requirements. That is contrary to every document I found in my agreement stating that my mortgage agreement wont change in anyway. (Also letters I recieved from BB&T) Also a signed document stating I only have to have the principle balance of my loan covered in flood insurance. I have called Sunflower stating they need to make this right and that is pretty decieiving tatics to let whoever buys my mortgage have the power to just change our legal agreement. I have also requested the document from BB&T that I supposedly signed. I know a real estate attorney that I am going to see if I can get a free consultation. I am also thinking about refinancing with another bank and just telling BB&T to **** off. (just sucks repaying all closing fees again but now its turning into the principle) I can't believe banks can get away with type of bullshit.

Yeah, make them show you the document. Sounds like BS that if the mortgage transfers the new lender can change material terms. Doesn't sound like any contract I'm familiar with. Hell, I guess they could change the interest rate too, huh?

As you mentioned, the problem with refinancing somewhere else is you're out closing fees, plus if you just got your mortgage 6 months ago, your new interest rate might even be higher now.

[LOCOChief]

all hazard and flood policies for mortgaged property must insure for replacement cost. Call your insurer and raise your coverage based on the "cost approach" analysis according to your appraisal. Maximum FEMA coverage for a single family residence is $250,000 regardless of the value of your home.
1. Don't call an lawyer, they'll cost you more than the increased premium.
2. Your mortgage company can sell your loan as often as they want.
3. Call your insurance company and if they say they won't insure for replacement call a different company.

All they have to do is add a clause to the policy, no biggy

[Gonzo]

Interest rates are about the same so doing a Refi might be the only way you can get out of this.

However, get your hands on that document. If Sunflower doesn't make this right, it's time to walk in front of their main branch with a huge sign for a few days.

[LOCOChief]

Originally Posted by Gonzo

Interest rates are about the same so doing a Refi might be the only way you can get out of this.

However, get your hands on that document. If Sunflower doesn't make this right, it's time to walk in front of their main branch with a huge sign for a few days.

Refinancing will do nothing to solve this issue. Coverage requirements will be the same.

[Nirvana58]

Originally Posted by LOCOChief

all hazard and flood policies for mortgaged property must insure for replacement cost. Call your insurer and raise your coverage based on the "cost approach" analysis according to your appraisal. Maximum FEMA coverage for a single family residence is $250,000 regardless of the value of your home.
1. Don't call an lawyer, they'll cost you more than the increased premium.
2. Your mortgage company can sell your loan as often as they want.
3. Call your insurance company and if they say they won't insure for replacement call a different company.

All they have to do is add a clause to the policy, no biggy

That is wrong unless there is some brand new law that just took effect. It is stated by FEMA in 2012 that they advise homes to get it for replacement cost but are only legally abided to do it for the princable balance on the loan. It was also written up that way on my loan agreement. Even if there is a brand new law wouldn't my legal agreement have to be grandfathered in.

[Nirvana58]

Originally Posted by Gonzo

Interest rates are about the same so doing a Refi might be the only way you can get out of this.

However, get your hands on that document. If Sunflower doesn't make this right, it's time to walk in front of their main branch with a huge sign for a few days.

It actually would be a little bit higher. I did a fixed interest when it was at 3.375%. I just happened to be looking at the right time. Either way I think it will be worth it because if I refinance I can drop the PMI. It is just coming up with the money for closing cost. I have everything I have wrapped up in repair cost to fix up the house.

[LOCOChief]

Originally Posted by Nirvana58

Update:

I finally got a hold of a BB&T supervisor. He basically told me that I was screwed and had to abide by the requirements. He told me in section 5 of page blah blah I signed a document stating basically that once Sunflower sells my loan that the new lender can change my mortgage agreement if it doesn't fit their requirements. That is contrary to every document I found in my agreement stating that my mortgage agreement wont change in anyway. (Also letters I recieved from BB&T) Also a signed document stating I only have to have the principle balance of my loan covered in flood insurance. I have called Sunflower stating they need to make this right and that is pretty decieiving tatics to let whoever buys my mortgage have the power to just change our legal agreement. I have also requested the document from BB&T that I supposedly signed. I know a real estate attorney that I am going to see if I can get a free consultation. I am also thinking about refinancing with another bank and just telling BB&T to **** off. (just sucks repaying all closing fees again but now its turning into the principle) I can't believe banks can get away with type of bullshit.

Your original lender Sunflower ****ed up. The requirements won't change from one loan servicer to the next. What is your pricipal balance vs replacement cost? IF you don't know look at the appraisal the bank required and look at the cost approach, cost of improvements. This shouldn't be a huge difference in premium. If you don't do this they will force place coverage which is 4x's the cost. Talk to you insurance agent. I finance properties on bridgeless barrier islands, this isn't a killer.

[Nirvana58]

Originally Posted by LOCOChief

Your original lender Sunflower ****ed up. The requirements won't change from one loan servicer to the next. What is your pricipal balance vs replacement cost? IF you don't know look at the appraisal the bank required and look at the cost approach, cost of improvements. This shouldn't be a huge difference in premium. If you don't do this they will force place coverage which is 4x's the cost. Talk to you insurance agent. I finance properties on bridgeless barrier islands, this isn't a killer.

The difference between the principal balance and replacement cost is over 70 grand. It is a pretty penny to me who schedule my bills accordingly not knowing I would need flood insurance. Long story short I bought a HUD home that they said wasn't in a flood zone but the Lender decided it was 5 days before closing. The new FEMA maps should pull my house out of the flood zone since I am the only house on the block in it. (I guess my the corner of my garage is in a flood zone and since it is connected to the house I have to be covered for the entire house). Everything I have read on the subject states legally you are only required to cover the balance of the loan. Do you know when this changed in the state of Kansas?