Countrywide Home Loans Unilateral Contract Alteration Calabasas California

I see I'm not the first one outraged by this. Countrywide has been servicing my home loan for about four years now. Suddenly, they are requiring flood insurance either equal to home owners insurance or the federal maximum. This will double my flood insurance premium. Now, here's the funny part in all this... I don't have ONE SQUARE INCH of "living space" in the flood zone. I have to carry flood insurance because my CRAWL SPACE and garage are below the flood level.

Like a flood is going to cause $250,000 (or even my current level of coverage at $170,000!) to my crawl space and garage!!!

One of two things is going to happen... I will either find another lender who is willing to abide by the FEMA/Fannie Mae/Freddie Mac flood insurance requirements:
"The LOWEST of:
1. Loan Balance
2. Replacement Cost
3. Federal Maximum (Currently $250,000)"

or this will end up in court. How about it? Any attorneys out there willing to take on this class action suit?

Here's the groundwork:
1. Pre-Loan signed agreement agreeing to the terms stated above.
2. A single statement in the closing docs that says, "What
lender requires pursuant to the preceding sentences can change
during the term of the loan" (Which is why they believe they can suddenly make this change)
3. BUT!!! My home was always worth much more than Countrywide requirement for flood insurance which gives us a four year track record of only complying with federal and funding requirements.

Countrywide is simply attempting to generate more income now that they are in trouble financially. They hope that people will not increase their flood insurance so they can utilize their own in-house insurance company costint the homeowner about three times the average premium.

I, for one, will not abide this. It is simply wrong. Yes, they have a right to have their loan amount protected. But requiring amounts over what borrowers originally agreed to is wrong.

Shout out and be heard!!

Craig
Roseburg, Oregon
U.S.A.