Comments on: Forced Placed Insurance Leads to Fraudclosure, Attorney Calls it a Case of Fraud

By: Steven

Steven — Fri, 28 Jun 2013 18:03:23 +0000

My lender Wells Fargo let my policy lapse for non-payment, even though the insurance company was their own subsidary and I had never missed a single payment. They then placed forced placed insurance on my account. I called because I had never missed a payment and they said it was a glitch and would take care of it. Instead they left the forced placed insurance policy in effect, increasing my payments by over $200 per month. I continued trying to get it solved for an entire year, never missing any payments. Finally I fell behind because of the increase and they are now foreclosing. I am arguing fraud. In class action lawsuits around the country they are being sued for placing outrageously high premiums for basic insurance. This is in cases where the home owner let their policy lapse for non-payment. At no time did I ever miss a single payment, yet they let my policy lapse for non-payment and shoved a force placed policy on my account. Have a hearing the 5th of July and will update after the hearing.

By: see

see — Thu, 15 Dec 2011 06:08:04 +0000

In reply to SBInsured. I understand completely what you are saying. What I am saying is if I am paying both my insurance and taxes and my homeowners policy more than covers the house and contents in the house, the bank has no right to force their insurance on me, because I am abidding by the terms that I signed at closing. If the bank says I have no insurance then they did not read the docs. Wells tried to force place insurance on me when I had paid my policy on time. They refused to believe that I had insurance and it took awhile for these idiots to back off. My insurance agent got involved and it still took awhile. Then they said I needed flood insurance when my the paperwork said I was not in a flood zone. My house is on a hill and the only way my house would ever be flooded is if there was another flood that requires a Noah's ark. I have read time and time again about homeowners who lost their homes because the banks decided to place insurance on homes when the homeowners were paying their premiums. I know first hand how unreasonable these people can be and it is all unnecessary. When your insurace agent calls and sends documentation and they still insist you are not insured, can you tell me who is at fault here? Like is said, if I didn't pay my premiums then they have a right to force place insurance on me. Other than that no way.

By: SBInsured

SBInsured — Thu, 15 Dec 2011 03:18:55 +0000

“See”, let’s think hypothetically for a minute. For whatever reason you don’t pay your insurance premiums. The insurance company sends you a cancellation notice which you either ignore or are legitamately having a financail hardship and cannot afford to pay the premiums. Either way the policy cancels. The lender notices that your policy lapses and add a policy to cover their loan balance. The next week your home burns to the ground while your family is away. Not an intential burning of course. No personal loss but the house is destroyed. Now you have no home and still owe the bank the full loan amount, let’s say $100,000. In all your grief, the lender sees the tradegy on the local news. They put two and two together and call you to tell you that a policy was added to your loan balance. They go on to explain that 51 of 52 weeks of premium will be refunded, so you may owe $30 for which the insurance carrier will now pay off your $100,000 loan balance. Would you still be upset that the lender placed a policy on your loan?

By: see

see — Wed, 14 Dec 2011 22:14:11 +0000

In reply to SBInsured. The problem here is that people who do not have escrow accounts and pay their insurance and taxes on their own are the ones who are having problems with the banks. The BANKS are the ones who should be READING the loan docs and should honor that and it seems that they are NOT. Of course, if I don't pay my insurance then I should expect them to put inforce a policy with outrageous premiums.

By: SBInsured

SBInsured — Wed, 14 Dec 2011 18:02:41 +0000

Please refer the loan agreement and or agreement to provide insurance documents your lender provided at closing. The required insurance and default remedies are explained in detail in these docs. If you are not providing the insurance described in the loan documents then do it. If you are, then the lender should fully refund any amount they have charged you.

By: Michael

Michael — Fri, 21 Oct 2011 20:04:40 +0000

In reply to Michael. Please write to me at olenick -at- legalprise.com. I've actually never heard of anybody actually making a claim on a forced placed insurance (FPI) policy, and would love to learn more about what happened.

By: Imanda Waldon

Imanda Waldon — Fri, 21 Oct 2011 19:53:20 +0000

In reply to Michael.

Yes Sir, Forced Placed Insurance denied our claim and was very threatening about us pursuing a claim. The represenative had me apologizing for filing a claim. He scared me so bad, we did not pursue. The forced place insurance is through CitiMortgage. We have been fighting for about 67 months, has cost us over $70,000.00 and they are trying to foreclose again. They said we didint pay enough…….get that. If you would like to hear our story; give me your phone number and I will call you.

By: pamelag

pamelag — Fri, 21 Oct 2011 16:27:06 +0000

gmac (ally, duetsch, homecoming) forced placed ins on me with balboa, whom they own. 3 months after they ‘bought’ my loan when the trouble started. i had plenty of my own ins, they wacked my escrow $4,000. started out pro se, hired a lawyer, (who vanished). the judge covered his ears and i lost my home. God Bless Us All.

By: Granicus

Granicus — Fri, 21 Oct 2011 13:34:40 +0000

The bank/servicers get kickbacks on these up priced policies. Just another honey pot for profit.

By: see

see — Fri, 21 Oct 2011 00:55:33 +0000

In late 2006 my servier changed to Wells Fargo. They started sending us letters that we were not insured and if we did not get insurance they would have no choice but to find coverage for us. Words to that effect. I called Wells and said that they were mistaken. We had our house since l987 and always had Allstate as our insurance company and our coverage was way more than adequate. Lady denied that there was any info about insurance, so I read to her our policy info and also per her request faxed her a copy of our policy. I called my insurance ageny and told him about what was going on and he was not surprised. He said Wells was known for that. My insurance agent also sent the info to Wells. Problem solved–NO WAY. Got a nasty call from someone at Wells. Told her this was crap and I advised her to call my insurance agent and also informed her our insurance agent had sent proof of insurance. After arguing with me for several minutes, she finally said she’d call the agent. I also told her if she did not correct the file I was going to complain to the insurance commisioner. Never heard from them again about the insurance.

Oh yah, she also stated we needed flood insurance, told her she was crazy for simple fact that I lived up a hill a hill and I was definitely not in a flood zone nor near any water. My loan papers stated flood insurance was not required. Bunch of F’n idiiots.