This updates the discussion in a series of posts here of False Swearing and other practices apparently indulged by some Foreclosure Plaintiffs, most recently on Wednesday, November 10, 2010.
The selection of "force-placed" Insurance, with Premiums to be paid by Borrowers in amounts added to their Mortgage Payments, is under scrutiny according to recent reports. Mortgage Servicers and their Insurance subsidiaries which are funneled the business, are of particular concern to some observers. "With little regulatory oversight or even private investor awareness, force-placed insurance has helped make drawn-out foreclosures lucrative for servicers -- far more so, in some cases, than helping a borrower return to performing status. As the intermediary between borrower and investor, servicers appear to be benefiting themselves at the expense of both." See Jeff Horwitz, "Ties to Insurers Could Land Mortgage Servicers in More Trouble" (American Banker, Wednesday, November 10, 2010).
Please Read The Disclaimer.
I understand under state law and based on the loan agreement that I have a responsibility to maintain hazard insurance on my property. BUT, what gives the banks the right to demand that I keep them informed? Basically what I'm saying is as long as I maintain hazard insurance I've kept my end of the agreement. The reason I'm posting here is that I keep getting letters from the lender demanding that I send them proof or they'll force place a policy. I never signed anything agreeing to prove it to them. As far as I'm concerned they should track down their own proof.
Thoughts?
Posted by: Tom | February 11, 2011 at 12:58 PM