Legal Question in Business Law in New Jersey

Mortage company/Hidden Cost

We receive a phone call 3 weeks that our mortage company Cornerstone have forgot to put some kind insurance on the paperwork. This was 2 1/2 years ago and Countywide called saying we need the 2 years which is $1500 by the end of the month. First, this wasn't our fault that they forgot to put on the paperwork and second there only giving us 3 weeks to pay it. Please help and should we just pay it or should Cornerstone be responsible for this?


Asked on 11/20/06, 9:14 am

2 Answers from Attorneys
John Corbett Corbett Law Firm LLC

Re: Mortage company/Hidden Cost

A complete answer to your question would require a few more details like exactly what kind of insurance is in dispute and why is payment being required now. There is certainly no sense at all in paying for mortgage insurance or hazard insurance that was not in force. However, the issue may be about a faulty computation where the lender was providing insurance or paying for insurance but not collecting for it. The issue may also be over the amount of the escrow.

If handled properly, there is a reasonable change that you will not have to pay for back insurance. However, you will probably have to get some kind of current insurance and it is not obvious that you are obligated to buy it from the lender.

It would be a good idea to discuss the situation with a lawyer and let that lawyer look over all the papers that you have that were signed in connection with the loan and settlement.

If I can be of further help, call me or email.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 11/20/06, 9:54 am
Robert Davies The Davies Law Firm, P.A.

Re: Mortage company/Hidden Cost

You absolutely, positively need to go see a lawyer near you and get some advice.

Do not try to do this on your own.

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Answered on 11/20/06, 11:12 am


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