Home Owners Hazard Insurance

Force-Placed Home Insurance Has Its Place

NEW YORK ( TheStreet ) -- The investigation of the nation's largest banks' force-placed insurance activities against homeowners -- if true -- could have easily been avoided if bank executives just avoided being greedy. According to a New York Times report, the office of New York State Department of Financial Services superintendent Benjamin Lawsky is investigating several of the largest mortgage loan servicers, including Bank of America , to find out if the servicers overcharged borrowers for force-placed insurance policies. Force-placed insurance policies are taken out by mortgage lenders or loan servicers, if they are unable to obtain proof of insurance on the homes or other developed properties securing the loans. Mortgage borrowers are generally required to maintain hazard insurance on the properties securing their loans, so that in the event of a disaster, the lender is assured that required repairs will be made. This not only protects the borrower from loss, it protects the lender's interest in the value of the collateral property. Since most first-lien mortgage loans are set up with an escrow account for property taxes and insurance, the mortgage servicer is responsible to collect enough from the borrower on a monthly basis to pay annual taxes and insurance premiums on the borrower's behalf. For mortgage loans that are not escrowed for insurance, and for second-lien mortgage loans or home equity lines, loan servicers are supposed monitor the insurance coverage, making sure to have a current insurance declaration page on file, to make sure their interest is covered. For flood insurance -- required for mortgage borrowers with collateral properties located in FEMA-determined special flood hazard areas -- bank regulators will carefully scrutinize loan files during examinations, to make sure the proper flood declarations are on file.

Arizona's Real Estate Closing Costs for Buyer and Seller

 

What the Buyer can expect to pay in closing costs: Down payment Title Insurance Premium for Lender’s Policy Appraisal Fee Credit Report Inspection Fees (roofing, property inspection, geological, termite, etc.) Loan Origination Fee Points paid to lower interest rate (if applicable) Escrow Fee (1/2) Document Preparation Notary Fees Recordation Fees Tax proration (from date of acquisition) Homeowners Transfer Fee All new loan charges (except those required by Lender for seller to pay) interest on new loan from date of funding to 30 days prior to first Payment date Assumption/Change of Records fees for takeover of existing loan. Inspection Fees (roofing, property inspection, geological, termite, etc.) City Transfer/Conveyance Tax (according to contract) Hazard Insurance Premium for first year impounds and interest on new loan Fire insurance premium for first year Home warranty Private Mortgage Insurance (PMI, if applicable) Hazard Insurance Premium for first year What the Seller can expect to pay in closing costs: Real Estate Commission Document preparation fee for Deed Payoff of all loans in seller´s name (or existing loan balance if being assumed by buyer) Interest accrued to lender being paid off, Statement Fees, Reconveyance Fees and any prepayment penalties. Any judgments, tax liens, etc., against the seller. Tax pro-ration (for any taxes unpaid at time of transfer of title) Any unpaid Homeowners dues Any bonds or assessments (according to contract) Any and all delinquent taxes

You may want to learn more about the escrow process here in Arizona.

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