Forced Placed Insurance | Elderly Couple Facing Foreclosure Claims JPMorgan Took Payments for Principal and Interest and Applied it Toward Insurance

Baird couple facing foreclosure claims house payments wrongly uncredited to mortage loan

It’s been enough to make Virginia Tollett sick with worry.

“If we hadn’t went and got an attorney, they would have auctioned our house on the courthouse lawn,” said Tollett, 72, her voice rising. “They would have sold our house.”

Tollett and her husband, Jim, 74, have turned to the courts in an effort to prevent lender JP Morgan Chase from foreclosing on the Baird home they bought for $300,000 in 2006 with the help of a $200,000 loan.

The banking giant did not respond to a request for comment.

Tom Watson, the Abilene Chapter 7 bankruptcy attorney representing the Tolletts, said a judge stepped in to prevent a sale of the home, scheduled for January. The status of the house remains uncertain, however, as a lawsuit remains pending in federal court that claims JP Morgan Chase wrongfully foreclosed on the home.

“What we are alleging is they took money that we submitted for payment to the principal and interest and instead applied it toward insurance,” Watson said.

But the couple claim that they already had insurance, so the lender was wrong to take out the home insurance policy.

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8 Responses to “Forced Placed Insurance | Elderly Couple Facing Foreclosure Claims JPMorgan Took Payments for Principal and Interest and Applied it Toward Insurance”
  1. dRp says:

    Yes, similar situation(s)
    Note usually States payments must be applied to principal and interest first!@

  2. Hmmm, same thing happened to us. It started at the closing. Our first payment was quite a bit more than it was supposed to be. Our servicer (EMC) stated they did not have the information showing that we had a non excrowed loan, so they paid our homeowners insurance – to the insurance company that WE chose prior to the loan. After 5 or 6 submissions of proper documentation, EMC told us the problem had been fixed. (Even the insurance company was giving false info to EMC and vica versa).

    We paid our payments on time for nearly 2 years, when I noticed we were being re-billed for escrow funds. I called several times monthly to EMC to get the situation rectified and made my payments over the phone with SPECIFIC instructions that our payments were to be applied to the interest on the loan as per our closing documents. Didn’t know this then, but I sure do now…………EMC was putting our payments where ever they felt necessary: partial $ to escrow, some $ to suspense accout, some $ to admin fees, very little to the actual loan itself.

    A few days prior to Christmas in 2008, I had a process server sitting in my driveway when I got home from work. I took 1/2 day off the next day to call EMC. As per the legally recorded conversation with EMC that day, it was stated that YES – EMC did have all proper documentation PRIOR to our closing proving that we had insurance and proof that our insurance was paid at closing. EMC even faxed to me all the documents they had on file showing when they received them and from whom.

    However, it was also stated by that representative that EMC paid the insurance just a few hours after they opened the work order. NOBODY contacted us, the mortgage broker, the title closing company or our insurance broker to verify if we did or did not have insurance in place. EMC simply opened the work order and cut a check for it. No questions asked.

    It’s it funny (sarcasm) how they just pay policies out of the kindness of their hearts to help homeowners? NOT.

    Guess where that stunt got us………….Yep – that’s right – been fighting them hard for more than 3 years now.

  3. The fraud never stops and still nobody goes to jail, I wonder how many more thousands of people have been foreclosed this way, I beet thousand and thousands…

  4. lvent says:

    These banks are insolvent and robbing from anyone they can….They are being allowed to take advantage of the elderly and people who don’t understand the massive scope of this fraud…! It is despicable!

  5. pamelag says:

    gmac forced place insurance on my already insured home, with balboa ins (whom they own). my ‘judge’ covered his ears. the only way i could have my house back was to ‘pay them’ for fake ins, pay late fees,(making payments they applied to ins),lawyer fees,drive bt fees, etc.etc. I am NOT a deadbeat! God Bless Us All

  6. Zee says:

    Yet another house that probably had equity the bank wanted for themselves to steal. The placed insurance wasn’t an error – it was simply the means to steal the house. JPMorgan is nothing more than a common thug and needs to be treated as such under the law the 99%ers live under.

  7. lvent says:


  8. Beth A. says:

    Chase sits at the thrown for all of the other evil banks. There is a special place in Hell for them.

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