MORTGAGE RIGHTS
Mortgage Loan Servicing Disputes Force Placed Insurance All mortgages require homeowners to maintain hazard insurance on their homes. Mortgages give the mortgagee (the bank) the right to buy insurance if the homeowner fails to insure the home. This is called force-placed insurance. Force-placed insurance can be extremely expensive, and provides less coverage. There have been problems in the past with servicers buying insurance from affiliated companies and receiving kickbacks. It has been unfortunately common for servicers to force place insurance even though the homeowner has insurance. Force-placed insurance has been such a problem that the Consumer Financial Protection Bureau enacted some strict rules. The servicer has to (1) have a reasonable belief that you do not have house insurance and (2) send the required notices to you before it can charge you for force-placed insurance. The servicer is not considered to have a reasonable belief that you do not have coverage unless it sends you a notice 45 days before charging you for force-placed insurance, and sends another notice 30 days after the first notice. If you provide proof of insurance, the servicer must (1) cancel the force-placed insurance policy and (2) has to give you a refund for those months where both your insurance and the force-placed insurance were in place. The servicer cannot charge you for its work in obtaining the force-placed insurance unless (1) it actually performed the work, and (2) the charge bears a reasonable relationship to the servicer's actual cost in performing the work. If you escrow for insurance, the servicer cannot force place insurance if it is possible for it to continue your insurance. If your policy expires, the servicer must advance funds to keep your policy in effect. Small servicers are exempt from the part of the rule, but the insurance they obtain must be less expensive than paying the policy you had.
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 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
Mortgage Loan Servicing Disputes Force Placed Insurance All mortgages require homeowners to maintain hazard insurance on their homes. Mortgages give the mortgagee (the bank) the right to buy insurance if the homeowner fails to insure the home. This is called force-placed insurance. Force-placed insurance can be extremely expensive, and provides less coverage. There have been problems in the past with servicers buying insurance from affiliated companies and receiving kickbacks. It has been unfortunately common for servicers to force place insurance even though the homeowner has insurance. Force-placed insurance has been such a problem that the Consumer Financial Protection Bureau enacted some strict rules. The servicer has to (1) have a reasonable belief that you do not have house insurance and (2) send the required notices to you before it can charge you for force-placed insurance. The servicer is not considered to have a reasonable belief that you do not have coverage unless it sends you a notice 45 days before charging you for force-placed insurance, and sends another notice 30 days after the first notice. If you provide proof of insurance, the servicer must (1) cancel the force-placed insurance policy and (2) has to give you a refund for those months where both your insurance and the force-placed insurance were in place. The servicer cannot charge you for its work in obtaining the force-placed insurance unless (1) it actually performed the work, and (2) the charge bears a reasonable relationship to the servicer's actual cost in performing the work. If you escrow for insurance, the servicer cannot force place insurance if it is possible for it to continue your insurance. If your policy expires, the servicer must advance funds to keep your policy in effect. Small servicers are exempt from the part of the rule, but the insurance they obtain must be less expensive than paying the policy you had.
 MORTGAGE RIGHTS
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
Mortgage Loan Servicing Disputes Force Placed Insurance All mortgages require homeowners to maintain hazard insurance on their homes. Mortgages give the mortgagee (the bank) the right to buy insurance if the homeowner fails to insure the home. This is called force-placed insurance. Force-placed insurance can be extremely expensive, and provides less coverage. There have been problems in the past with servicers buying insurance from affiliated companies and receiving kickbacks. It has been unfortunately common for servicers to force place insurance even though the homeowner has insurance. Force-placed insurance has been such a problem that the Consumer Financial Protection Bureau enacted some strict rules. The servicer has to (1) have a reasonable belief that you do not have house insurance and (2) send the required notices to you before it can charge you for force-placed insurance. The servicer is not considered to have a reasonable belief that you do not have coverage unless it sends you a notice 45 days before charging you for force-placed insurance, and sends another notice 30 days after the first notice. If you provide proof of insurance, the servicer must (1) cancel the force-placed insurance policy and (2) has to give you a refund for those months where both your insurance and the force-placed insurance were in place. The servicer cannot charge you for its work in obtaining the force-placed insurance unless (1) it actually performed the work, and (2) the charge bears a reasonable relationship to the servicer's actual cost in performing the work. If you escrow for insurance, the servicer cannot force place insurance if it is possible for it to continue your insurance. If your policy expires, the servicer must advance funds to keep your policy in effect. Small servicers are exempt from the part of the rule, but the insurance they obtain must be less expensive than paying the policy you had.
 MORTGAGE RIGHTS
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
Mortgage Loan Servicing Disputes Force Placed Insurance All mortgages require homeowners to maintain hazard insurance on their homes. Mortgages give the mortgagee (the bank) the right to buy insurance if the homeowner fails to insure the home. This is called force-placed insurance. Force-placed insurance can be extremely expensive, and provides less coverage. There have been problems in the past with servicers buying insurance from affiliated companies and receiving kickbacks. It has been unfortunately common for servicers to force place insurance even though the homeowner has insurance. Force-placed insurance has been such a problem that the Consumer Financial Protection Bureau enacted some strict rules. The servicer has to (1) have a reasonable belief that you do not have house insurance and (2) send the required notices to you before it can charge you for force-placed insurance. The servicer is not considered to have a reasonable belief that you do not have coverage unless it sends you a notice 45 days before charging you for force-placed insurance, and sends another notice 30 days after the first notice. If you provide proof of insurance, the servicer must (1) cancel the force-placed insurance policy and (2) has to give you a refund for those months where both your insurance and the force-placed insurance were in place. The servicer cannot charge you for its work in obtaining the force-placed insurance unless (1) it actually performed the work, and (2) the charge bears a reasonable relationship to the servicer's actual cost in performing the work. If you escrow for insurance, the servicer cannot force place insurance if it is possible for it to continue your insurance. If your policy expires, the servicer must advance funds to keep your policy in effect. Small servicers are exempt from the part of the rule, but the insurance they obtain must be less expensive than paying the policy you had.
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.  MORTGAGE RIGHTS