Wednesday, October 26, 2011

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:

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