When your mortgage company fails to pay your insurance out of escrow, what can you do?

May 14, 2020 | Posted in Uncategorized

What can you do?

Answer: Your mortgage company made a big mistake here if the insurance policy was “escrow-billed”. Often, this problem may not surface until a homeowner suffers a loss and attempts to make a claim with his insurance carrier, only to find out that the policy lapsed for failure to receive a payment. The effects in that situation can be devastating, as not only are you dealing with what may be a catastrophic loss of property, you are left with little recourse without an Oklahoma mortgage escrow lawyer. Unfortunately, most mortgage servicers are huge entities, and you will more than likely get bumped around within their system indefinitely if you attempt to handle the problem on your own. Our first piece of advice would be for you to promptly contact a reputable attorney in your area who is well versed in these matters including insurance disputes, and mortgage servicer’s failure to pay insurance out of escrow.

As soon as possible, contact an Oklahoma mortgage escrow lawyer or Tulsa insurance dispute lawyer to assist you. If you’d like to go it alone, you will first need to contact your original insurance carrier and getting a new insurance policy in place, or ask to have your old policy reinstated if possible. If your insurance carrier won’t do this, you may have to pay for the pricier, bare bones coverage that the force-placed hazard insurance policy provides until you can find other true hazard coverage. Once you have new or a reinstated policy in force, send proof of the insurance policy declarations, along with a receipt/proof of payment to your mortgage carrier/bank via certified mail, return receipt requested, and also whatever fax number they provide you for delivering these documents. You will need to request that your mortgage company immediately cancel the force-placed insurance policy, and demand that they reimburse your mortgage account for the difference in the premium payments that they made to put the force-placed policy in force. If there is an increase in your new insurance policy’s premiums due to the cancellation, your mortgage company or bank should be responsible for paying the difference here as well.

Force-placed insurance coverage generally only covers the mortgage holder’s interest in the property, and not any equity you may have in the home, let alone the contents or other property and liability normally covered by standard homeowners insurance. Even worse, a mortgage company / servicer may often derive a financial benefit by failing to pay your insurance out of your escrow account, as they often own all or stock in the force-placed insurance company, and receive a kickback by putting a policy in place.

Wandres Law is well versed in Oklahoma insurance disputes and mortgage company mistakes. Contact us today for a free consultation.

Finding Help For Your Mortgage Escrow Needs

An Oklahoma mortgage escrow lawyer plays a pivotal role in ensuring a smooth and legally sound real estate transaction. Whether you are a homebuyer or a seller, their expertise is invaluable in navigating the complexities of mortgage escrow arrangements. To see what we can do for you, reach out to Wandres Law Injury and Accident Attorneys.

1. Understanding Legal Documentation: Mortgage escrow lawyers are well-versed in the intricate legal documentation involved in real estate transactions. They can explain complex terms and clauses in contracts, ensuring that you fully understand the implications of the agreement you are entering into. This ensures that you make informed decisions and avoid potential pitfalls.
2. Due Diligence: One of the lawyer’s primary responsibilities is conducting thorough due diligence on the property in question. They will investigate the property’s title, uncover any existing liens or encumbrances, and ensure that there are no legal issues that could jeopardize the transaction. 
3. Drafting and Reviewing Contracts: An Oklahoma mortgage escrow lawyer can draft, review, and negotiate contracts to ensure that they accurately reflect your intentions and protect your legal rights. They can also add specific clauses that safeguard your interests, such as contingencies related to property inspections or financing.
4. Escrow Account Management: Escrow accounts are central to real estate transactions. Mortgage escrow lawyers oversee the establishment and management of these accounts, ensuring that funds are handled correctly. They verify that earnest money deposits, down payments, and closing costs are placed in escrow as required by the contract.
5. Title Insurance: Title issues can be a significant hurdle in real estate transactions. Mortgage escrow lawyers can help you obtain title insurance policies that protect you against any unforeseen title defects or claims. They review title reports to identify potential problems and work to resolve them before closing.
6. Resolution of Legal Issues: If any legal issues arise during the transaction, such as disputes over property boundaries or zoning regulations, your lawyer can provide guidance and work to resolve these issues efficiently. Their legal expertise is instrumental in finding viable solutions that protect your interests.
7. Compliance with Local Laws: Real estate transactions are subject to a plethora of local, state, and federal laws and regulations. Mortgage escrow lawyers ensure that your transaction complies with all relevant laws, which can vary significantly from one location to another. This includes adherence to tax regulations, zoning codes, and environmental laws.
8. Closing Process Assistance: Your lawyer will guide you through the closing process, ensuring that all necessary documents are properly executed and recorded. They ensure that funds are disbursed correctly, title deeds are transferred, and the transaction is legally completed.
9. Post-Closing Support: Even after the transaction is completed, a mortgage escrow lawyer can provide ongoing support. They can assist with post-closing issues such as property tax assessments, homeowner association disputes, or any unforeseen legal matters related to the property.

A mortgage escrow lawyer is an indispensable ally when engaging in real estate transactions. Their legal expertise, attention to detail, and commitment to protecting your interests make the process smoother and less fraught with potential legal pitfalls. Whether you are buying or selling property, having a skilled attorney by your side ensures that your rights are safeguarded and that the transaction proceeds as smoothly as possible. Reach out to Wandres Law Injury and Accident Attorneys to see what our Oklahoma mortgage escrow lawyer can do for you.

Insurance Claim Denials FAQs

Our Tulsa, OK insurance claim denials lawyer knows that dealing with insurance claim denials can leave many people frustrated and uncertain about what to do next. It is common to feel confused by policy language, unclear explanations, or delays that make the situation even harder to manage. Our goal is to offer practical information that helps you understand what steps you can take and how to move forward after a denial. We believe in dedication to our clients and fighting for their rights, so call us today.

Why Do Insurance Companies Deny Claims?

Insurance companies deny claims for several reasons, including missing documents, disputed liability, questions about coverage, or alleged policy exclusions. Sometimes the denial is based on incomplete information rather than a firm conclusion. When you review your denial letter, pay attention to the specific reason provided. This helps you decide whether additional proof, a corrected document, or legal support may be needed to challenge the decision.

What Evidence Should You Gather After A Denial?

After a denial, our Tulsa insurance claim denials lawyer knows it helps to gather all records tied to your claim. This may include medical reports, repair estimates, bills, policy documents, photos, or communication from the insurance company. Even small details can clarify what happened. Once you organize your information, you can reassess the situation, identify any gaps, and decide what follow-up steps may strengthen your position.

Can You Appeal A Denied Insurance Claim?

Yes. Most policies offer a clear process for appeals. You can submit additional documents, request reconsideration, or ask for clarification of the denial. Many people overlook deadlines, so reviewing the time limits in your policy is important. An appeal can correct misunderstandings, add missing material, or highlight inconsistencies in the insurance company’s reasoning.

What Should You Do If The Insurance Company Requests More Information?

If the company asks for more information, respond within the deadlines listed in the request. Provide clear copies of the documents they want, along with any helpful supporting materials you already have. If the request seems unclear or overly broad, you can ask the company to explain exactly what they need. Accurate and timely responses help prevent additional delays.

When Is It Time To Get Legal Help After A Denial?

You may consider legal help when the denial seems unfair, communication becomes difficult, or the insurance company refuses to reconsider despite strong evidence. A lawyer can review the denial, identify potential issues with the insurer’s reasoning, and help you determine whether further action may be appropriate. Many people seek support at this stage to better understand their rights and possible next steps.

When insurance claim denials affect your recovery, your property, or your financial stability, you deserve clear guidance. Wandres Law Injury and Accident Attorneys can help you review your options and understand whether the denial can be challenged. If you want direction on appeals, communication with the insurer, or next steps, you can reach out to us for a free consultation and steady support with insurance claim denials. When you are ready to move forward, you can count on our Tulsa insurance claim denials lawyer to help with insurance claim denials in a dependable and practical way.