Wachovia Mortgage Complaint - Uses LLyod's on Your Dime

Review by Slimjim on 2008-08-01
My home has a mortgage through Wachovia. I did not allow them to escrow insurance and taxes as they wanted fees which I hadn't experienced with other lenders and thought less of it. Through an error in communication with our carrier, one of our policies MAY (we are still sorting it) have had a lapse from early April to the 28th. Once we showed the home covered, they(Wachovia) billed us for the 3 week lapse. The bill was around $2500 for less than a month. Our total premium on the policy in force is around $3300 for the whole year. As the story goes, they use Lloyd's to underwrite lapse coverage.

So my tip for the day is if you use Wachovia, make sure you stick the insurance coverage responsibility on them through escrow and demand it not be at an extra fee as I have now done. Through this simple error in billing from my insurance company, Wachovia has now cost me double this year by using a carrier that is 10X the price of anyone else. I cannot believe in the name of service benefits to their borrowers, they can't find a more reasonable insurance carrier to cover their property when they know it's on someone else's dime.
Comments:6 Replies - Latest reply on 2009-02-23
Posted by bill on 2008-08-01:
I also had Wachovia for my mortgage and every year I had problems with them in regards to insurance. They would say I didn't have insurance even after I had sent them proof. It would always take motnhs to get straightned out.
Posted by madconsumer on 2008-08-01:
this is why many lenders require an escrow account. the bad part is, if you had 20% down, then this is not required as the lender feels if you have 20% down, then you can manage your own home insurance coverage.

the reason they use lloyds is, they have a vested interest in the property, and are only securing their investment.
Posted by Slimjim on 2008-08-01:
To be more precise, the reason they claim to use Llyod's is because they need to insure sight unseen. I know though that Lloyd's isn't the only company that will do that, but certainly one of the top priced. We did put more than 20% down BTW.
Posted by spiderman2 on 2008-08-01:
If you put down less than 20% on your house, the bank requires Property MOrtgage Insurance (PMI). All banks require you to have homeowners insurance in force during the duration of your loan.
Posted by Slimjim on 2008-08-01:
Posted by Beware of Crook on 2009-02-23:
I'm in the process of shopping for a home so I called wachovia today to get information on a home mortgage loan and was told there is a 1/4 percent Fee on loan amount to lock in the interest rate. For example on a $375,000 loan they want to charge $937 just to lock in the interest rate. That alone is a Big Red Flag to me, I'm sure there will be other Junk/Unessary fees they will come up with as well, so I decided to look up complaint/reviews on wachovia, I'm disgusted with this bank, I'm taking my business elsewhere and am not going to waste my time/money with these CROOKS ! Make sure you SHOP around for a mortgage, alot of them will try to charge you these and other bullsh*t fees that you DON'T HAVE TO PAY !

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