Thousands In Central Florida Pushed Into Foreclosure Over Rampant 'Force Placed Insurance' Fraud? Homeowner Advocate: Bankster Scam Is Running Rampant

In Hernando Beach, Florida, Fox Channel 13 reports:

• Thousands of people in Hernando County are being forced into foreclosure because of what banks call "force placed insurance." But some homeowners and their advocates call it fraud, and they are fighting back.



• At issue is homeowner's insurance. If a homeowner doesn't pay it, the bank will buy insurance and bill the homeowner. In Hernando County, where sinkholes are rampant, insurance rates have skyrocketed.



• It has left people like Joyce Wogan vulnerable. Wogan pays her mortgage on time every month, but she just got an ominous letter from the bank. . It read in part "....your current flood insurance doesn't meet the minimum required amount. We've purchased temporary insurance to protect our investment in the property."



• Here's the problem: Wogan's annual insurance premium went from rough $1,500.00 a year to more than $7,000.00. Wogan's attorney calls it a case of fraud.



• "This fraud is running rampant," Mark Stopa said. He accused Wogan's bank and others of buying insurance policies at hugely inflated prices as a way to improve profits. He said often the insurance companies are associated with the banks.(1)

For more, see Forced insurance leading to foreclosure.

(1) For more on the banksters' force placed insurance racket, see:

• Ties to Insurers Could Land Mortgage Servicers in More Trouble (When banks buy insurance on the homes of borrowers whose policies have lapsed, they get a great deal. Just not for the homeowners and investors who have to pay for it),
• Losses from Force-Placed Insurance Are Beginning to Rankle Investors,
• New Questions about Banks' Force-Placed Insurance Deals (QBE, carrier used by Wells Fargo and SunTrust, avoids oversight through 'surplus lines' structure),
• South Florida Homeowners Seek Class Action Status In Lawsuit Tagging Loan Servicer Over Dubious, Force-Placed Insurance 'Gravy Train',
• The Continuing Force-Placed Insurance Squeeze,
• Loan Servicers' Force-Placed Insurance Racket Targeted By State AG Settlement Offer,
• BofA's Force-Placed Insurance Unit Hid Foreclosure Information, Say E-Mails Released By Hacker Group,
• GAO Review request in connection with the USA v. Fairbanks litigation. Exhibit T (see page 2), Exhibit U, and Exhibit V will show that HUD-OIG and, therefore, the FTC, US Attorney General's Office, etc. knew about force placed insurance, alleged kickbacks, etc. at least as far back as 2003 (courtesy of GetDShirtz.com).