Mortgage company's mistake left Houston couple uninsured during Beryl, now they owe up to $40K

HOUSTON, Texas (KTRK) -- An East End couple may need to pay tens of thousands of dollars out of pocket for storm repairs after their mortgage company was late submitting payment to their homeowners' insurance company.

Jeremy and Sandie Worrell make monthly homeowners insurance payments through FocusOne Mortgage Solutions, their mortgage lender. The mortgage company holds those funds before making one large payment to the couple's insurer each year.

"We've always done the responsible thing," Jeremy Worrell said, noting that he believes his mortgage company failed to do the same.

Insurance documents reviewed by ABC13 state that the mortgage provider paid the insurance company late, canceling Worrell's homeowners' insurance coverage.

"We would not be here today if our mortgage company did what they needed to do," Jeremy Worrell said.

The couple told ABC13 they did not know their policy had been canceled until they tried to make a claim after Hurricane Beryl. Notification of cancellation was mailed to their home. However, documents indicate the address was incorrect.

A contractor estimate shared with ABC13 shows the property sustained $30,000 to $40,000 in damage. Yet, the Worrells' insurance company will not cover the damage because they were technically without insurance during the storm.

"Anger was the first thing that I thought of," Worrell said.

The pair told ABC13 they had been going back and forth with FocusOne for months until a representative called them last week, saying they would not cover the storm damage. The representative also reportedly told the couple that if they do not pay out of pocket for the Beryl-related repairs soon, the company will send someone out to fix it and add those charges to the pair's mortgage payment.

ABC13 made multiple attempts to contact FocusOne. Wednesday, our team visited their Houston office, and an employee said the necessary contact was tied up on a call. She provided contact information for the contact.

To date, no one has responded to ABC13's inquiries.

"We've always been responsible, and I don't think the little guy should be the one who gets stepped on," Worrell said.

ABC13 spoke with attorney Randy Sorrels. He has not reviewed the Worrells' mortgage agreement but said it is relatively common in Texas for mortgage companies to pass down the cost of their mistakes to the consumer.

"The mortgage companies have very powerful lobbyists that allow them to get protection at the legislature from many of these provisions, including arbitration," he explained. He added, "The way contracts are set up now, they're anti-consumer, pro-business."

Sorrels suggests that those in positions similar to those of the Worrell family should consider an attorney and report their mortgage lender to the Better Business Bureau.

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