Don’t trust your servicing company

[Jorge Vazquez]

Don’t trust your servicing company to manage your escrow properly—seriously. Another story… this happened to me just this week. I logged in and saw they slapped on lender-placed insurance that was four times higher than my usual premium. I called right away and found out it was just an “oversight”—they never paid my actual policy, so they tacked on their overpriced version. I told the rep, “The land alone is worth $200K. I’ve managed thousands of properties over 20 years, and I’ve only seen one total loss—and they still got value back from the lot.” But they just stuck to their script. After five calls, I said forget it—called my agent, backdated a proper policy to January, found the servicer’s fax number, and submitted the cheapest coverage that matched the loan balance—$265,500. A few days later, they accepted it. That move saved me from a huge escrow spike. And when you own 40 properties, mistakes like that add up fast. Every dollar matters—especially when you’re doing BRRRR. You’ve got to protect your cash flow at every turn. Don’t assume your servicer is watching out for you. They’re not. Investors think differently. And don’t even get me started on the property tax fight—that saga’s coming next.