Saxon pays mortgage insurance late

We receive input from many of you and we are wondering about Saxon Mortgage once again. It seems insurance companies bill Saxon well ahead of time, but 30 days later Saxon sends letters to the homeowner. The letters say that hazard insurance has not been paid.

Yes, there may be a transition as Saxon becomes the servicer for other banks. Many realtors, however, tell us that Saxon has other issues.

The problem clearly comes from the fact that Saxon holds insurance payments until the very last minute before releasing payment to the insurance company. Perhaps they should revisit their own correspondence department.

In talking with “Esther” from Saxon one customer reported that Saxon paid their insurance company three days before the letter was sent. The old “The check is in the mail” excuse from Saxon, I guess. Of course each error takes time to track down. You and I both know that letters like these cannot be ignored. After calling the insurance company, and then calling Saxon, customers still do not know if everything will work properly. Realtors say Saxon is often a lender of last resort. Could this be because they anger homeowners?

Editor’s Note: This report was originally filed on our Mortgage Blues website.