Mortgage companies

sixpkrt

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Anyone ever had a bad experience with one? My place in Chicago just changed hands for the 5th time to a new lender, and they're asking for payment on the building insurance, which was paid to the old lender in September. The previous lender held the note for 9 months.
I called the old lender and the number goes directly to a collection agency automated recording. My first thought is oh sh*t, what happened to my $2200 bucks?
There should be some type of requirement of lending institutions to have financial solvency for the length of the loan, and to not sell their loans after they have entered into an agreement on the loan.
 
5th time wow. Is your interest rate higher than average? I would call your insurance co and check to see if it got paid.
 
I am curious, your Insurance is usually paid directly to the Insurance company when due,as well as taxes directly to the county.(held in escrow) Notes are always resold these days, if they are the standard Fannie MAE or Freddie MAC type. The secondary market is the primary holder of notes, with only a few exceptions.(In house Mortgages, few and far between)
 
Anyone ever had a bad experience with one? My place in Chicago just changed hands for the 5th time to a new lender, and they're asking for payment on the building insurance, which was paid to the old lender in September. I called the old lender and the number goes directly to a collection agency automated recording. My first thought is oh sh*t, what happened to my $2200 bucks?
There should be some type of requirement of lending institutions to have financial solvency for the length of the loan, and to not sell their loans after they have entered into an agreement on the loan.

They are required (or at least they used to be) to hold all escrow monies (for instance, insurance payments and prop taxes) separately so if they became insolvent that should not have negatively affected your $2200 ins payment. I would try to call the ins company to make sure they didn't get it and there just wasn't a hiccup in the process......maybe they did and the new lender isn't aware of it.

If they didn't get it, well, you have a problem to solve but if you have the proof you sent it then you should be GTG. You also need to do a bit of research to see what occurs if you paid it already to the other company.

I dealt with a similar issue during my mortgage....we paid the ins to the ins company and the mort company always paid the prop taxes on time vs early but had I been paying them myself I'd had saved a bit. They were almost late twice, just barely made the deadline even though they had the $$ sitting there. The longer they hold it the more they make it interest. We may be getting a mortgage again but if so I am going with the local CU so we don't have to deal with someone from halfway across the world when trying to straighten out problems that arise.
 
I elected to go with a local bank that has about 6 branches when we bought our house a little over 3 years ago. It's costing me about a tenth of a percent more in interest, but they told me straight up that they do not sell their mortgages, they still require 20% down, but I've not paid a cent mortgage insurance, I'm not required to escrow my insurance or property taxes. On top of that their closing fees were nothing in comparison to the big banks such as citizens, PNC or the likes.

I talked to the credit union. They didn't even handle the mortgages in house. They have you fill out some forms and they are then sent out to someone else to handle.

I guess all I'm trying to say is find a small local bank, ask questions and give them a chance.
 
Well the mystery has been solved. The insurance on the rental building in Chicago was transferred to the new lender yesterday, after getting the insurance company involved with the new lender, and the coverage has been applied to the escrow account.
I suspect the hiccup occurred because about the same time I changed insurance on the building, little did I know, the loan was being sold to a new lender.
I do not include the taxes on the loan because I'd rather make the semi-annual payments myself and collect the interest off my own money rather than Crook county, IL taking a another bite of my money.
As for the loan itself, I have a really good fixed rate for a commercial property, I'm just wondering how long it will be before this new loan will be sold to another bank.
Thanks everyone for your input.
 
It's hard for a smaller company (CU, bank, or MTG company) to hold a note full term. Regs make them keep a certain amount of money liquid, and smaller institutions need to keep capital free. If a 35 million dollar institution does 15-20 home loans, and holds the asset for full term, they would almost never have new money for car and personal loans. I was a mortgage broker, and, most recently VP of a smaller credit union for over 12 years...
 
It's hard for a smaller company (CU, bank, or MTG company) to hold a note full term. Regs make them keep a certain amount of money liquid, and smaller institutions need to keep capital free. If a 35 million dollar institution does 15-20 home loans, and holds the asset for full term, they would almost never have new money for car and personal loans. I was a mortgage broker, and, most recently VP of a smaller credit union for over 12 years...
Very true. Now if you give a 300,000 dollar Mortgage, you have to retain that amount in reserve to guarantee that the note is good. How many Banks can do that?
 
I've heard many stories of people falling into traps with mortgage companies, but I've been very lucky with a company I've worked with for several years. I was very afraid to put my apartment on a mortgage, but after I did manage to get to know these good credit attorneys, I decided to take the step and now I am very satisfied. My payments are going strictly according to plan, I am never late on my payment days and so my mortgage should be finished in about 4 years. I took a very modest home so I am so lucky, and Mortgage Advice Cambridge always comes to the rescue if I have any questions
 
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I can imagine the frustration you must be feeling. It might be beneficial to reach out to your current lender directly to clarify the situation and request detailed documentation regarding the insurance payment. Additionally, you may want to check your mortgage agreement to understand the terms regarding lender changes and their responsibilities.
 
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