Complaint Review: Chase Mortgage

Our mortgage loan was purchased by Chase after closing in 8/08 where we had all in place and made all payments with an additional principal payment for the next six or eight months. We initiated Allstate Homeowners at closing with the premium of $846. 

We were approached in 2/09 to refinance, however this did not occur.  In 8/09 we received notice from Chase to update our homeowners information.  We did by contacting Allstate to have the necessary information sent to Chase.  At this time we thought all this was taken care of.  We did not hear anything from Chase or Allstate again.  Apparently Chase neglected to pay our homeowners premium to Allstate and neither Chase or Allstate contacted us on this matter.  Allstate issued a cancellation due to non-payment in 11/09.  Again no correspondence from Chase or Allstate at this time.

In 8/10 Chase again requested homeowners updated information.  At this time we contacted Allstate to supply the necessary documentation to Chase and we were informed that we had no insurance due to non payment of premium. Between conversations with numerous customer service agents we found that indeed Chase had been billed and had not paid the premium, however they are not accepting fault. 

On 9/9/10 we received notification that we needed to obtain homeowners insurance within 15 days, which we did with USAA. This cost us a higher premium $1375, due to the non-payment.  So our property was without insurance for a period of 11 months. 

Then in 10/10 Chase placed their hazard insurance on our loan and began charging us an additional coverage for the period of 8/09-9/10 in the amount of $1254.  This caused our escrow to become a negative balance. WE have and still continue to request a refund of this amount, they did refund $888. of this balance but are still charging us the remainder of the balance on our escrow. 

In 12/10 we found Amica to write our homeowners and immediately cancelled the policy with USAA which issued a  refund of $1049.85.  The premium with Amica is $1399. 

So now Chase has increased our payment some $280 vs $128 to cover all the premiums for the entire year.  We have requested and been denied any resolution with this issue.  Our payment has gone from $688.24 to $840.55.

We requested that Chase review our escrow statement and all they did was increase the payment, the credits to the escrow either are incorrect or have not been applied on the statement to date.

Bottom line is that Chase mishandled our escrow funds and we are being penalized for their mistakes.

We contacted an attorney which has informed us we need to file a claim in court for this amount.  We were told to report them to FHA, FTC, BBB and our attorney general to which we are doing at this time.

This is a major headache and has caused issues at home and stress on the family.  We do not see what the problem if the banks are "helping" consumers with their problems I do not see where Chase is helping anyone.  Their representatives are rude and not very helpful in fact they can get really ridiculuslly loud and overbearing.  Some do not speak clear english and neither we or they understand what we are trying to achieve.