I financed my mobile home through Green Tree's Georgia offices about 8 years ago. A few years later, I was sent a letter from Green Tree stating that my account was now being handled by Conseco. Then, more recently, I received a letter from Conseco that my account was being handled by Green Tree again.
I have had the same insurance policy from American Modern Home since the date I purchased the mobile home. Green Tree was sent verification of insurance at the time of purchase and apparently received it, as this situation has not come up before now during the last 8 years. The policy has never lapsed.
On October 4, 2004, I received a letter from Green Tree Servicing LLC indicating "It has come to our attention that we have not received evidence that you have purchased insurance as required by your loan agreement... If we do not receive proof of acceptable insurance within 20 days of the date of this letter, we may excercise our contractual right to obtain insurance coverage on the property to protect our interest until such time as evidence of acceptable coverage is received from you. You will be responsible for the cost of the insurance purchased by us and any other finance charges that may be assessed."
Now bear in mind that I received the letter 27 days AFTER the date of the letter.
On October 8, I contacted American Modern Home and requested a copy of my policy be faxed to Green Tree Servicing LLC.
However, Green Tree's letter went on to say that "If you provide us with evidence that you have obtained the required insurance, we will then cancel the insurance that we have purchased, but you will be obligated to pay us any cost we have incurred for obtaining the coverage. Please note that you are responsible for these costs even if you actually have required insurance but do not provide us with timely evidence that it is in effect."
I hardly see how I should be responsible because someone in THEIR offices lost my insurance policy, which they received almost 9 years ago and which has never lapsed, nor because their letter didn't arrive for more than 27 days after it was supposedly mailed. If they wanted to set a legal dealine on this matter, they should certainly have sent the letter certified mail. Suppose I had not received it at all?
I feel the whole thing is a scheme to allow Green Tree to sell insurance to me against my will. For example, I know that Green Tree has their own insurance company, because I spoke with them recently about the possibly of refinancing my mobile home with them and the party I spoke to tried to sell me one of their policies.
I am now waiting to see what they intend to do next.
Dalzell, South Carolina