Mar 092010
Are live big trouble. Currently, I loan because the mortgage company refused to do my regular payment of arrears. Police put the bumper of my loans have increased by 4 times, I was able to pay the money, and now my house is 3 months later. I continue to get this particular bank runs. I have proof of insurance coverage for them, but there is a seven-LASP months. If there is a way out of this situation?
- how to fight forced placed insurance
- can a mortgage company put retroactive insurance
- lapse force-place insurance
- how to get forced insurance money back from mortgage company
- how to fight force placed insurance
- how to fight chase force placed insurance
- how does force-placed insurance work
- homeowners insurance what penalties are there for lapse
- forced placed insurance fight
- forced placed insurance
You let your insurance lapse for 7 months. They provided you with coverage for those 7 months, you have to pay.
You may work with them on a payment plan to get caught up. Mortgage companies don’t want to foreclose, so they should work with you.
Good luck and and keep up on your insurance!
The mortgage company will not back off the forced insurance for the period of time that YOU did not provide the insurance. Be aware that forced placed insurance is EXTREMELY expensive, and that is why your payment went up so drastically. The mortgage company paid for what you failed to provide according to your mortgage.
You are on the hook for those seven months of insurance.
No, there isn’t – you have to pay for the coverage, for the seven months that you had none. Those are the terms of your mortgage agreement.
You’re stuck on this.
You’ll have to call the mortgage, and work something out. But you DO owe this money.
That’s the penalty for allowing your homeowners insurance to lapse. You signed a contract with the mortgage company saying that you would carry a policy on the dwelling. It is a requirement for you to carry the coverage. This covers the mortgage company’s interest.
Since you allowed your policy to cancel, the mortgage company is protecting their interest by force-placing the coverage. You broke the contract by allowing the policy to cancel.
Once you purchase insurance on your own, you must make the mortgage company aware and show proof. But you will still have to pay for the force-placed policy for the time you would have been uninsured.
The force-placed policy is very expensive, and only covers the balance on your loan, to cover the mortgage company’s interest should there be a loss. The policy does not cover your contents or personal liability.
Just take your experience as a lesson in real estate and insurance, pay for the forced policy, and get over it. Don’t allow this to happen again.
You’ll have to make up the mortgage payments, or the bank could possibly foreclose. If that happens, you will lose your investment and any equity you have in the property. If they foreclose, and they sell the house, you will still owe a balance if the property is sold for less the the outstanding balance.
Best wishes, and may God bless you.
Talk to your current insurer (the one that issued your “new” policy)–point out that you were insured for the 7 months prior to the current policy (as a result of the force placed insurance) and that no claims were made nor have there been any occurrences (things for which you could make a claim). Ask them to make your current, new policy retroactive over those seven months if you pay the premiums for those seven months. If they agree, pay the premium ASAP, get proof of the retroactive coverage, and then go to your mortgage company and argue there was no lapse.