Home Buying in 02368>Question Details

Mary-elise H…, Both Buyer and Seller in Indianapolis, IN

Is there any recourse for a situation where a lender withdraw approval in underwriting, but went ahead and had the insurance policy issued ?

Asked by Mary-elise Haug, Indianapolis, IN Sat Aug 11, 2012

The approval was withdrawn by the underwriter from Polaris stating a 403b from a former employer was unacceptable as a portion of the reserves. The t&c stated I was eligible to withdraw funds upon separation from the employer, but it did not say I was separated from the employer. The employer was a library consortium that is no longer in existence and I haven't work there since 2000. The loan processor refused two offers of a three way call with retirement fund (TIAA-CREF) to try to work this out. I was floored today when an insurance policy (effective 8/9, the original close date) arrived in the mail.

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3
I would suggest immediately canceling the insurance policy. It's hard for anyone online to really comment on what happened as we don't have all the facts, however I think it's highly unusual that the lender ordered the insurance policy to begin with. IF there's any amount owed I would demand they pay it as you didn't order the policy.

Depending on the circumstances I might also consider filing a formal complaint against the lender with your state banking commission, Secretary of State (they over see the lenders license), and possibly your state Attorney Generals office.
0 votes Thank Flag Link Sun Aug 12, 2012
Is this a homeowners ins policy? Cancell it then.
0 votes Thank Flag Link Sun Aug 12, 2012
How could someone apply and authorize an Insurance policy FOR YOU?

You had to sign something!
0 votes Thank Flag Link Sat Aug 11, 2012
I had discussed the term of a policy with my agent awhile back, before I had closing date to let her know what was coming, so I knew what the cost was going to be, but I never signed forms. I expected that was going to be part of the closing package.
Flag Sat Aug 11, 2012
I did not sign anything. They called my insurance agent.
Flag Sat Aug 11, 2012
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