Legal Question in Real Estate Law in Illinois

Is it legal for a mortgage company to pay and renew my insurance without consulting with me first and for the insurance company to cash a check without check with us first? The thing is my insurance was not up yet, when this was done! They needed proof we were insured, the insurance company sent them the renewal by mistake so we had to call them again and send them the copy where it states we were insured. From that time to now, my house monthly payments were up and we were wondering why? We also noticed we had not receive the bill for the renewal, when we called we were then informed it was paid the full year by our mortgage company without our knowledge, we feel our legal rights were violated. Please can anyone tell me if this is even legal??? Thanks!!!


Asked on 6/17/10, 3:24 pm

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

It sounds like you have an escrow account for your insurance (and probably for your taxes as well). It is perfectly reasonable (and legal) for your lender to pay the insurance bill, in fact they are required to do so if you have an escrow or impound account. It is also reasonable for them to pay it before it is due, so there is no lapse in coverage. You can change your insurance company any time you like, but you will need to inform the lender of the new insurance company.

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Answered on 6/18/10, 5:57 am


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