I refinanced with Mortgage Now and we closed the loan without having flood insurance. When they sent over the HUD form right before closing, I brought it to their attention that flood coverage was not checked and that I thought I needed flood insurance since I currently had it through Allstate Insurance. I was told by them that they did the proper checking and to them I was not in a flood zone, so I cancelled my flood coverage. A week after closing my loan was sold to Wells Fargo, they called and said that I needed flood insurance. I told them that Mortgage Now said I didn't, Wells Fargo double-checked and said I did but that I could fax over the Flood Certification that Mortgage Now did. I called Mortgage Now, I was told that I would have to call the Title Company from NJ and ask for the Flood Certification, they also sent me a copy of the appraisal and said if I was in a flood zone it would have shown there as well. I called the Title Company and was told they would check for the Flood Certification but they probably would not have it, Mortgage Now would.
I went through the appraisal line by line and found that it clearly states I'm in an FEMA Special Flood Zone "A". So now I'm going to have to up my Escrow account a few hundred dollars a month to cover flood insurance that Mortgage Now swore up and down I legally did not need. This wasn't in my budget and I'm going to be in jeopardy of losing my home because of this "mistake" by Mortgage Now. I did some research and I believe that they closed this loan illegally, "4012 a. Flood insurance purchase and compliance requirements and escrow account" "***". This is on top of my previous loan not being paid off because the Title Company sent the payoff check to the wrong bank, which I was never aware of until I started receiving calls that I was late on my mortgage payments. It took over 10 phone calls and hours on the phone till they finally got that corrected. Monthly payment will now go up and also I will have to front the bill for a years worth of flood insurance coverage.
