Be Responsible For The Late Charge?
Q: My mortgage was sold and transferred. The insurance company had sent the bill to the first mortgage company, who failed to send it to the second mortgage company. The first I heard of it was when I got a cancellation notice and a $10 late fee charge. The second mortgage company told me since they never got the bill, they would have to take the late fee out of escrow.My question - second mortgage company should be responsible for the late charge?
A: No!!second mortgage company should responsible for the late charge, and you too. Hopefully the insurance company didn't actually cancel your insurance. This happened to me once, my mortgage being sold and the late charge, but the first mortgage company ate the fee, helps that they didn't maintain an escrow account to automatically take it out of.