Countrywide Home Loans

Posted on Saturday, December 11th, 2004 at 12:00am CST by 27011ae1

Company: Countrywide Home Loans

Category: Other

Countrywide Home Loans

Consumer follow-up message - December 14, 2004 - From: COMPLAINTS.COM_FORM_MAIL_70780# Consumer

Follow-up: I found several executive-level names via the internet, and emailed them - including the president of the company. The response was phenomenal, and the issue was resolved in hours. First-rate. Its unfortunate that the customer-service department couldn't have resolved this at their level.

Countrywide Home Loans, Los Angeles, New York and Chicago

I recently received a letter from Countrywide stating that, in the absence of an in-force homeowner's insurance policy, they were "purchasing" a policy on my behalf. For the record, the reason I have no insurance is that it was cancelled for non-payment, due to Countrywide's mishandling of my escrow account.

My original mortgage was with Indy Mac Bank - they were set up to handle my Allstate homeowner's insurance policy through escrow. Recently, Countrywide Home Loans purchased my mortgage from Indy Mac. Soon after, I received notice from Allstate Insurance, informing me that my homeowners policy was cancelled due to non-payment. I also received notice from Countrywide Home Loans, informing me that because I had failed to provide them with information for an in-force policy, they have purchased a policy on my behalf (purchased from a Countrywide subsidiary, of course), using funds from my escrow account. This policy provides minimal coverage, yet charges extremely high premiums.

It took many phone calls on my part to orchestrate the communication between Allstate and Countrywide. They have finally agreed to communicate the necessary information to each other, although I won't know if this has completely fixed the situation until I can verify a) the information was provided; and b) the payment was made; and c) the policy was reinstated (without penalty); and d) my escrow was not pillaged to pay for Countrywide's bogus insurance policy.

I find it simply indredible that I have been caught up in this at all - one would think that this sort of thing would be handled behind the scenes by PROFESSIONALS. I also find it completely unbelievable that a mortgage company can purchase one's mortgage and put them into a catch-22 situation that leaves them without insurance protection, and then require them to pay excessive rates for reduced coverage!

From my perspective, in this situation the burden is on Countrywide, not Allstate, to ensure that a policy that was in force at the time they purchased the mortgage remains in force - particularly when they, as purchaser of the related escrow account, are responsible for doing so. Their mishandling of this has left me and my family without homeowner's insurance and therefore at extreme risk.

I'd be interested to hear from others who have had a similar insurance experience with Countrywide -

Jim C Click this link to e-mail the above consumer: COMPLAINTS.COM_FORM_MAIL_70780# Consumer

1 Comment

71f58835, 2008-10-14, 10:47PM CDT

The same thing has happened to me. Countrywide cancelled my policy and forced a $17,000 policy on my home stating that the home was vacant. I am a full time resident of the home and have proof but they won't remove the policy. If you have any names of who I can contact, I'd appreciate it.


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