When completing a mortgage loan and the title ins company misses the whole year of insurance , is this fraud?

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  1. Reply
    April 30, 2011 at 12:35 am

    There is a huge amount of paperwork involved in putting together a mortgage. The companies that have to work together all have different ways of doing business, and it’s easy sometimes for paperwork to be misplaced or misinterpreted.

    However, all of the companies are focused on one goal: to make the mortgage loan a profitable one for all involved for the life of the loan. It is unlikely that any one of the folks involved would risk committing fraud in such a high profile area as insurance.

    Sounds like an honest mistake.

  2. Reply
    Navy Sailor - GAI
    April 30, 2011 at 12:52 am

    Title insurance and home insurance are not the same thing so what are you asking about? If you paid on a new mortgage for an entire year and NEVER noticed that money for your home insurance was never being deducted from your monthly payment to be put into your escrow account I would put you as much to blame as your mortgage holder and insurance company. You should have been getting quarterly reports on your mortgage either in paper form or electronic that showed you exactly how your payments we being applied. Did you ever bother to look at the statements. No fraud here, just bad attentions to detail from day one of closing on the mortgage until now when you noticed. Your payment breakdown for P & I, insurance and taxes is all included in your closing documentation that you should have read prior to signing.

  3. Reply
    Serge M
    April 30, 2011 at 1:00 am

    For fraud to occur, the event has to be deliberate with the intent to deceive and knowledge that it is wrong. Most likely what you describe is the result of an honest error. Some real estate transactions are complicated and involve a lot of parties, so a mistake can easily happen. The party making the mistake should be willing to correct it.

  4. Reply
    April 30, 2011 at 1:12 am

    It’s not fraud. It’s an error. If they had not made the error, you would have paid for the missing insurance anyway, would you not have ?

    Pay the insurance and have it over and done with.

  5. Reply
    Mortgage Expert
    April 30, 2011 at 1:29 am

    If it is listed on the HUD-1 settlement statement then they should have paid it. If they are saying they did not, then they need to do so asap. If they are saying that they did, I would request proof.

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