the un-unmortgage

Business can be tough... Take the business of getting a mortgage, or house insurance. Here describes two interesting, yet equally incomprehensible (if you ask me) decisions made by two companies.

First came the issue with house insurance. Lets rewind for a moment to August 2005 when we first purchased our home down south. We had house insurance through Allstate. We sold the house Sep 30, 2009. We (unfortunately) do not have tenant's insurance.

In April of 2006 we got vehicles and insured both of them with Allstate. We have had this policy ever since.

We asked Allstate for a quote on house insurance for the new house we are buying. Their decision? Declined. Why? Well, basically they told us that we have no history or loyalty with them. You see, from closing date to closing date, over 6 months will have passed, so we are apparently brand-new disloyal customers. No amount of discussion was going to change their minds, and the lady's attitude wasn't very friendly or helpful to the situation. (I will not name the specific lady, but I do not mind naming Allstate itself, as I believe these are Allstate mentalities and methods of practice, and not necessarily the "fault" of the individual, they were just doing their jobs).

Second issue came with Mortgage. We applied with ING Direct (and a couple of other places: A mortgage broker, and RBC). We were pre-approved by all 3 sources - nice! ING had the best rate, so we decided to go with them. We sent them all the paperwork they requested.

Then they asked for additional paperwork, provided. Then some more, again, provided. We were declined. Why? You see, my husband works for a not-for-profit organization. He is a regular salary-paid full time employee just like anyone else who works there. Just so happens that he is also one of the founding members, and just so happens that his brother is the President & CEO.

This was a problem for ING. Somehow this translated into them not being able to verify his income (even though we provided pay stubs, deposit records, letter from employer, etc...). They classified him as being self-employed. No amount of discussion was getting anywhere, their decision was final.

There was another slight problem too, a silly thing if you ask me. We both get paid via an actual cheque that we have to deposit. Because we can't have the funds be held, we have to deposit at the teller. We deposit both at once, and they show up as one deposit on the transactions. ING could not confirm that the deposits matched the pay stubs, even though all but a few were provided (and the few could easily have been provided). Apparently they didn't want to do the "math" to add the two pay stubs together and see they matched the deposit.

(I make note that I do not hold any ill-will towards our account rep, he did everything he could and we appreciate that. I disagree with the organization.)

We are fortunate though. These two experiences (that in my opinion should not have happened), could have broken the deal of buying the house, we'd be in trouble! But we had those other approvals, and we have other insurance connections. Nice to say that we have an almost equal mortgage rate from RBC, and we have a property insurance policy and a much better vehicle insurance policy with another organization (its great to have family in the business).

As for ING and Allstate, they do not get any of my business. Our 11+ year old savings account with ING will be closed (all the money transferred out, waiting to close it until they pay current interest earned). Our vehicles will no longer be insured with Allstate. Their business policies are not acceptable to us, and we will not do business with them.