Anonymous
Posted on: 21st Jul, 2005 09:47 pm
i have taken a HUD mortgage some months ago. only
recently I came to know that my lender has stopped paying hazard insurance.what should i do?
recently I came to know that my lender has stopped paying hazard insurance.what should i do?
Hi Guest,
Welcome to the forums.
Section 6 of the Real Estate Settlement Procedures Act provides that every lender should pay the insurance from a borrower's account in time. On failure of this payment, a borrower can file a law suit under the same section. Since the lender has stopped paying the hazard insurance, you should contact him and seek a refund from him.
You should also approach the insurance company to verify whether the bills are paid. You should also see if you can pay the insurance company directly so that your policy can be sustained.
You should maintain the copies of your payments to the lender towards the hazard insurance. It is better if you consult an attorney who can guide through the legal procedures related to this matter.
Hope this information will help you in taking necessary action.
Wish to receive your feedback soon.
Regards,
Jessica.
Welcome to the forums.
Section 6 of the Real Estate Settlement Procedures Act provides that every lender should pay the insurance from a borrower's account in time. On failure of this payment, a borrower can file a law suit under the same section. Since the lender has stopped paying the hazard insurance, you should contact him and seek a refund from him.
You should also approach the insurance company to verify whether the bills are paid. You should also see if you can pay the insurance company directly so that your policy can be sustained.
You should maintain the copies of your payments to the lender towards the hazard insurance. It is better if you consult an attorney who can guide through the legal procedures related to this matter.
Hope this information will help you in taking necessary action.
Wish to receive your feedback soon.
Regards,
Jessica.
