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View Diary: NY Atty. Gen. Schneiderman LOVES Today's Mortgage Fraud Deal. UPDATED x3 Liz Warren Likes it Too! (261 comments)

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  •  You say that the abuses only occurred to people (0+ / 0-)

    already in default - based on what? Your opinion that this is the truth? I know that it is not the truth by reading and following this issue closely for years now.

    Probably 20 minutes of Googling could show you how much in error you are:

    NYT- How to Handle Force Placed Insurance

    That article is from last month replete with examples of current homeowners subjected to force placed insurance.

    You might give this a look as well, also filled with examples of current homeowners who became the victims as their servicers ran roughshod over them.

    Senate Testimony from Attorney from The national Consumer Law Center

    I actually don't even understanding the point you seem to be trying to make - that only homeowners in default were victimized by abusive fees - does that somehow make it less horrible in your eyes? It was abusive and illegal practice, regardless of whether the homeowner was in the current or default status.

    “Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough.” FDR

    by Phoebe Loosinhouse on Fri Feb 10, 2012 at 09:04:45 AM PST

    [ Parent ]

    •  Allow me to amend my comment. (0+ / 0-)

      It was typically only when people would miss payments or when they were otherwise in default that they would get caught in this vortex of fees.

      Insuring your home is a condition of a mortgage.  If you don't keep the insurance requred in the mortgage contract, you are in default on the terms of your mortgage, and yes, you will then likely get caught in the vortex of fees.

      Fortunately, most people who have a mortgage understand that they must insure their home, and so they carry the required insurance themselves.  If you don't, it is true: your bank will get the insurance for you, and charge you some outrageous amount for it.  

      •  Why not try reading the articles I linked to? (0+ / 0-)

        Particularly the NYT one.

        You don't seem to understand the concept of force placed insurance as it applies to the concept of mortgage servicer abuse.

        Yes, we all know you have to keep your house insured if you have a mortgage.

        “Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough.” FDR

        by Phoebe Loosinhouse on Fri Feb 10, 2012 at 09:33:17 AM PST

        [ Parent ]

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