It’s estimated that thousands of homeowners have been ripped off with forced placed insurance, and they will be interested to know that the National Mortgage Complaint Center is beginning a national initiative to try to put right this scandal.
The watchdog is asking homeowners to contact them on their website, NationalMortgageComplaintCenter.com as they want to hear their story, and they have had enough complaints from consumers to know that this problem is huge.
Forced placed insurance is being put on homes that are empty and which may be liable to vandalism. This expensive and somewhat exotic insurance generally costs between three and five times the amount of a standard insurance policy. It doesn't take a genius to realize that the profit margins for banks and home loans servicing firms can be considerable.
The National Mortgage Complaint Center believes there could be tens of thousands of US homeowners who are paying this premium because their bank or loan servicing company has signed them up, in some cases without their knowledge. In many cases homeowners are already paying for a standard insurance policy and the problem has only come to light when they noticed their payments were much too high.
According to the National Mortgage Complaint Center, some homeowners have been told that forced placed insurance is required on their property. Apparently this isn't correct, as it's only necessary in cases where the house has been abandoned or vacant, or the homeowner has stopped making mortgage payments. The insurance policy cannot be applied arbitrarily.
It's the aim of the National Mortgage Complaint Center to identify every US homeowner who has recently been a victim of this forced placed insurance scam, and who has been paying for this largely unnecessary homeowner’s insurance on top of their standard insurance policies.