How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Jane Doe Deer Your Own Question
Jane Doe Deer
Jane Doe Deer, Lawyer
Category: Real Estate Law
Satisfied Customers: 3896
Experience:  Attorney since 1986; Plain English explanations of Landlord/Tenant & Purchase/Sale
10033880
Type Your Real Estate Law Question Here...
Jane Doe Deer is online now
A new question is answered every 9 seconds

I dont know if Real Estate Law is the correct category, but

Resolved Question:

I don't know if Real Estate Law is the correct category, but here's my question:

I recently refinanced my house from a variable ARM (3.75%) to a fixed 30-year loan at 5%, to lock in to a fixed loan. After closing, I was notified that I needed to raise the coverages of my 3 insurance policies (Beach property, North Carolina - 3 policies are required - Homeowners, Wind & Hail, Flood). The increases are all based on the appraisal they did during the loan process, but includes the house, decks, unattached walkways and decks, and uses a $/square foot rebuild value that I believe exceeds the simple nature of how the house is built. I negotiated the Flood coverage down by showing the FEMA coverage does not even cover decks, walkways, - only the building.

I've requested coverage for Homeowners and Wind & Hail be reduced to the appraisal value of the house only, not the decks and walks, which seems reasonable since the land alone is appraised at 82% of the loan value. This will still cost me more, but won't be as harsh. But I'm getting nowhere.

But even with the lower flood coverage, I will have to pay an extra $475 a year in extra premiums. If they had explained this to me before closing, I would not have refinanced. But now it's after closing, the old loan is paid off and I can't go back.

Do I have any options? What can I do? It doesn't seem fair that I'm notified about this after closing and payoff of my original loan.
Submitted: 6 years ago.
Category: Real Estate Law
Expert:  Jane Doe Deer replied 6 years ago.

Thank you for contacting Just Answer. I look forward to assisting you.

 

While we write back and forth, please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. Sometimes I'm unable to read your entire question until AFTER I write back to you.

 

Although it's usually five minutes, sometimes there can be a delay of an hour or more in between my answers because I may be researching the answer to your question, helping other customers, or taking a break. If we are writing late at night, I may have to go to sleep and resume helping you the following morning.

 

I need the following information before I can answer your question:

 

Can you please tell me whether a requirement for the additional insurance was spelled out in any of the paperwork you signed, at any time before or during closing?

 

I may have a couple of additional questions for you, too.

 

Please be aware that JustAnswer.com and Eanswer.com are pay-for-answer web companies. You have offered to pay me $30 for my work and I just need your acknowledgement that you will pay JustAnswer and me for the answer (as long as you are satisfied that I answered your question, of course).

 

I'll look forward to hearing from you,

 

Jane Doe Deer

Customer: replied 6 years ago.
Hi,

I will look through the paperwork I have to see if there is any mention of the increase of insurance. It may take a day for me to review all of the paper work, but I'll let you know as soon as possible. Some of the closing documents I have are .pdf, so I can start this afternoon.


Thanks,
Gary
Expert:  Jane Doe Deer replied 6 years ago.

If you weren't warned ahead of time there are two things to do.

 

1. File a Consumer Protection Complaint: http://ncdoj.gov/Consumer.aspx The advantage to you of this route is that it's free.

 

2. File a lawsuit for breach of contract.

 

I will be here today and tomorrow. I'm not available on Saturday. I'll be available Sunday.

 

My best,

 

Jane

Jane Doe Deer and other Real Estate Law Specialists are ready to help you

Related Real Estate Law Questions