Force-placed insurance is placed on mortgaged properties to provide coverage in the event the current coverage lapses or is deemed to be insufficient. It is intended to ensure that the property remains insured, protecting both the homeowner and the loan provider. However, in some cases, the lenders take advantage of homeowners.
Major home loan providers such as Wells Fargo, Bank of America, JP Morgan Chase Bank, Citibank, GMAC and HSBC Mortgage Corporation began to require more insurance than required by law, the mortgage agreement or greater than the bank’s financial interest in the property.
The attorneys at ZKB law recently filed a class action lawsuit against Wells Fargo for committing this unlawful scheme. If your bank or lender force-placed an insurance policy on your home, you may have been treated unjustly. Contact our class action attorneys, toll-free (888) 841-9623, for a free consultation.
Did You Know?: Banks must observe notice requirements when presented with evidence of lapse.
Zoll, Kranz & Borgess, LLC – class action lawyers