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.

[TimeForWasp]

Walk down the street and knock out an unsuspecting person.

[Nirvana58]

Originally Posted by ChiefsNow

Walk down the street and knock out an unsuspecting person.

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.

[cdcox]

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.

Do stuff in writing. If you are on the phone, record them and tell them you are doing so. Be religious about it and tell everyone you are talking to that you are recording them. Ask them to show you the clause that allows them to change the terms of the loan. Make it clear that you will not roll over.

[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.

[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]

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.

[DenverChief]

Originally Posted by 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.

Hire a lawyer - preferrably a Chiefsplanet one

[Bugeater]

Real estate lawyer. Call one.

[BossChief]

I'd look over everything you signed. You probably signed your name a gazillion times without knowing what you were signing. Hopefully, you didn't sign a release stating that you understand your loan will be sold (which happens nearly every loan) and additional requirements could be added after the fact. Depending on your own ability, you could read every word and be sure there isn't something that allows them to do that...or you can hire a lawyer and let him read over everything.

Usually, all required insurance and applicable taxes are escrowed into your mortgage payment and I've never heard of this kind of situation.

[Mojo Jojo]

This is a job for a real estate attorney.

[cdcox]

This is what I would do, before hiring a lawyer:

1. Go through your loan documents.

2. Circle the part that says you have to have insurance for the principal amount.

3. Read very carefully every bit of paper about loan transfer to another company. Google any term you don't understand. Rewrite any strange terms until you understand them. Plan to spend a couple days on this activity. When you are done, you have to be able to answer the question:"Are they allowed to propose new terms in the paper work you signed?"

a. if yes, prepare to pay. They ****ed you. Go to "I need a laywer"
b. if you still don't know, go to "I need a lawyer".
c. if you are pretty sure the answer is "no",

i) Go to "I need a lawyer", but stop at part a. If you need to go to part b, I'd try the below first.

ii) write a letter explaining that you did not agree to new terms upon resale of your mortgage and that you only agreed to provide flood insurance on the principal. CC HUD, sunflower, your congressman, both senators, and maybe some other federal agencies I'm can't pull up in a 30 second web search. They may be hoping you're a dumbshit that will just roll over. Show that you know your rights and have a backbone and there is a good chance they will back down without you having to hiring a lawyer.

4. I need a lawyer

a. do you have any family members or friends that are lawyers that will write a letter on your behalf gratis? If so, this is the time to be humble and take that favor.

b. If not, get a lawyer. Make sure you get one that will tell you if it is a lost cause.

[mesmith31]

This is great advice. I would add that your note and mortgage are legally binding contracts that would be enforceable on any subsequent 'bank' that purchased your loan. IF the contract does not require the additional insurance AND does not allow for provisions to alter the terms of the contract without the consent of both parties THEN they should not be able to add these additional provisions.

If you are concerned about the cost of hiring attorney (which is understandable if the added insurance cost is a burden), then consider going to a local university law school who will sometimes offer free legal assistance. You may also check with local consumer advocacy organizations who could also find you some free legal help. Often with free information you get what you pay for, however if you have already done your homework they can be useful for confirming the legality of that which you have already discovered on your own.

If you go with a paid attorney have all your questions prepared, stick to they key points, use your research and get in and get out of there, preferably with a nasty letter to send to your bank. You are probably looking at $150-300 for the consultation, plus $100-200 for the letter. That could vary.

Originally Posted by cdcox

This is what I would do, before hiring a lawyer:

1. Go through your loan documents.

2. Circle the part that says you have to have insurance for the principal amount.

3. Read very carefully every bit of paper about loan transfer to another company. Google any term you don't understand. Rewrite any strange terms until you understand them. Plan to spend a couple days on this activity. When you are done, you have to be able to answer the question:"Are they allowed to propose new terms in the paper work you signed?"

a. if yes, prepare to pay. They ****ed you. Go to "I need a laywer"
b. if you still don't know, go to "I need a lawyer".
c. if you are pretty sure the answer is "no",

i) Go to "I need a lawyer", but stop at part a. If you need to go to part b, I'd try the below first.

ii) write a letter explaining that you did not agree to new terms upon resale of your mortgage and that you only agreed to provide flood insurance on the principal. CC HUD, sunflower, your congressman, both senators, and maybe some other federal agencies I'm can't pull up in a 30 second web search. They may be hoping you're a dumbshit that will just roll over. Show that you know your rights and have a backbone and there is a good chance they will back down without you having to hiring a lawyer.

4. I need a lawyer

a. do you have any family members or friends that are lawyers that will write a letter on your behalf gratis? If so, this is the time to be humble and take that favor.

b. If not, get a lawyer. Make sure you get one that will tell you if it is a lost cause.

[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.