We had not closed out things with Bank #1 just in case we hated Bank #2. I was busy doing stuff around the house and did not get around to opening the mail until 6 pm. I found a letter from Bank #1. It stated in not so nice terms that we did not have insurance on the new house. Bank #1 threatened to purchase insurance for us and we would pay whatever they decided to charge. I was livid.
We do have builder's risk insurance and have had it long before we signed any loan paperwork with Bank #1. To make matters worse we had submitted all of the policy information to the less than organized loan officer at Bank #1. What she did with it, I have no idea.
The following day I put in a call to the insurance department at Bank #1. They had no record of any insurance policy. To stall them I submitted the policy information. I then called the customer service number for Bank #1 and got the loan payoff amount.
You may wonder why we needed to pay off a loan when we never received any money. Bank #1 took us for quite a bit of money in fees. This was very clever on there part. They made money for doing absolutely nothing. I was angry enough with them to pay this amount and consider it a lesson learned.
The lesson - if you have a bad feeling about a person's professionalism, take heed. It also pays to check around and talk to other people. Once we started having major problems with Bank #1, we discovered that many other people did too. We never had to tell anyone the name of Bank #1. All they had to hear was bank problems, and they could tell us the name.