My house was foreclosed on! Why? When I was two days late paying my house insurance (State Farm), they sent a cancellation notice without my knowledge to my mortgage company. They bought a prohibitively expensive insurance policy on my house from their own subsidiary. The mortgage company is First Union / Wachovia / HomEq/Money Store, Fidelity Union, etc. They took money out of my house payments and then trashed my credit rating beyond repair. They then foreclosed on my house to collect this money even though they were not legally entitled to it. They wanted $1,150 per year for a worthless policy.
I have found another homeowner who had the same thing happen with another mortgage company. They foreclosed on her house to collect $1,900 for the same type of policy. She is in a panic trying to remortgage her house. Once she gets the new mortgage, the old mortgage company will hold her hostage to collect the money or they won't release their lien on the property.
I met another woman who had her house foreclosed on for refusing to pay the taxes on another house thirty miles from where she lives. I did some research and found out that the agent for the mortgage company lives in that town. She also found out that they had purchased life insurance on her for the balance of the mortgage without her knowledge and was charging her for it. This is all profit for the mortgage company for if she died, they would collect on their mortgage from the sale of the house. Family members would not collect on the insurance because they would not know about it and therefore would not file a claim.
If you have a mortgage, you have probably been scammed. You need to send a certified letter to your mortgage company and ask them to reveal if the 1) have a property insurance policy on you, 2) ask them if they have a life insurance policy on you and 3) ask them for a strict accounting of how they appropriated money taken from your escrow account. Also check your property tax statement and match that against your actual taxes paid by the mortgage company.
If you were even one day late paying your house insurance, your insurance company sent a cancellation notice to your mortgage company. They do not send reinstatement notices to the mortgage company like they do to you. Why? Just about every State has laws against insuring beyond the value of a house. If you ever had to file a claim, your insurance company can get the mortgage company insurance company to pay half. Thus your insurance company is charging you the full price but only providing you with half the insurance. A huge profitmaker and you are the chump.
Fight this scam. Call your state insurance commission and write to your Federal and State Senators and Representatives. This scam constitutes racketeering and is a felony. While nothing is done, they have made over a billion dollars in profits at the expense of homeowners who have no clue they are being cheated. Those who remortgage wind up having all of those hidden fees added to their payoff and get ripped without ever knowing about it.
Fight back!!!
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