Chase Manhattan Mortgage Corporation purchased by mortgage from another lender a few years ago. When the loan package was first created, it included an escrow account whereby insurance an taxes would be included in my regular monthly payments (so that I could avoid having to pay taxes and insurance as a lump sum). The escrow account worked fine until Chase purchased the loan and began servicing it! First, they failed to pay the insurance premium out of the escrow account. Several times they were contacted by my homeowners insurance representative. There were docmuented multiple telephone inquiries as well as faxed letters from my carrier. The final conversation, which was also documented with date, time and full name of Chase's employee, ended with Chase promising to over night mail the premium immediately. It never happened.
Unfortunately for me, the carrier mailed a letter to inform me of the cancellation but I had relocated. I did not discover that CHASE was now my new carrier until several months later. I immediately contacted my old carrier and found out that Chase had failed to pay the premium. Then I contacted Chase and demanded copy of the new policy, which THEY had issued. INSTEAD OF COSTING $300.00 in premiums, CHASE'S policy was now costing me $3,000.00 in premiums (TEN TIMES THE GOING RATE to insure this property). My original carrier knew I was vey unhappy and said that it would be happy to provide coverage as soon as the premium was paid. CHASE would never do so, despite my requests. Instead, they continue to self-deal by choosing themselves as carrier and paying themselves 1000% profit in overcharging me.
Also, this caused my escrow account to be short (because $3,000.00 was not the estimated cost for insurance when the loan was create). Therefore, my payment has shot up drastically to accomodate their scam (from m$675.00 to almost $900.00 per month)!
I have contacted my congressman and spoken to a lawyer, and everyone says there is nothing we can do from California because they are a big NY corporation. I have called and called Chase, but I stay on the line bing told I will be served in the order my call was received. After 30 minutes of holding, another recording came on the line and said "thank you for trying - all representatives are still busy - try back at aother time" - AND HUNG UP ON ME! I believe this is a way for Chase to stonewall the many unhappy customers which it is servicing loans for (and undoubtedly sticking it to with a Chase insurance policy)!