After GMAC sold Lisa Encarnacion’s mortgage to Green Tree Servicing, things went wrong.
In the almost two decades GMAC serviced Lisa Encarnacion’s mortgage, the Hoffman Estates resident never had a problem.
Then her mortgage was sold to Green Tree Servicing in February. Things quickly began to unravel.
Encarnacion said she sent Green Tree proof of her homeowners insurance and was told not to worry. Green Tree would put her insurance payments in escrow then directly pay her policy with American Family Insurance.
In April, she received a letter from American Family saying Green Tree hadn’t paid. Encarnacion said she called Green Tree again and was told she had been given the wrong information — she should pay American Family directly for her homeowners insurance.
Once again, she was asked for proof that her condominium was insured. Once again, her insurance agent faxed it to Green Tree, she said.
In early July, Green Tree sent her a letter saying her mortgage was in default. The letter said Green Tree was going to initiate foreclosure procedures. Immediately, Encarnacion called Green Tree, she said.
She was told that her last three mortgage payments were considered partial payments because Green Tree did not have proof that her townhouse was insured. Without proof of insurance, Green Tree began charging an additional $500 per month for a “force-placed policy,” an insurance policy set up through Green Tree to make sure the property was protected.
In the months that followed, Encarnacion spoke repeatedly to Green Tree, she said. Each time she was asked to provide proof of insurance, and each time she or her insurance agent faxed over the requested documents, she said.
To avoid foreclosure, she paid Green Tree an additional $1,000 for insurance. Encarnacion said she was told the $1,000 would be refunded once she provided the proper proof of coverage.
Encarnacion said she faxed Green Tree proof that her condo was covered at least eight times.
By mid-August, her account remained in disarray, so she emailed What’s Your Problem?
She said she had no idea if Green Tree had the document it needed, or whether she would receive her $1,000 back.
“This is just insane,” she said. “From a financial standpoint, you want to know what your mortgage payment is going to be.”
The Problem Solver contacted Whitney Finch, vice president of investor relations for Walter Investment Management Corp., which owns Green Tree Servicing.