New From ANONYMOUS: Mortgage Insurance Fraud 101: How Banks Rip You Off And How To Fight Back
May 16, 2011 at 3:47 PM
Dr. Pitchfork in Bank of America, FRAUD, anonymous, anonymous, bank of america, bofa, force-placed insurance, foreclosure, foreclosure fraud, fraud, fraudclosure

You may remember the Anonymous/BofA leak from a few weeks back.  We covered it here.  Part 1 of the "leak" turned out to be just a few emails from a former Balboa Insurance employee. (Balboa was bought by BofA in the Countrywide acquisition.)  But as an insider to the fraud machine, the leaker gave us a behind-the-scens peak at how banks and servicers use force-placed insurance scams to defraud borrowers.

Recently, the ex-BofA employee put together a post called Insurance Fraud 101, which explains in great detail how the force-placed insurance scams work.  Basically, the servicer does everything possible to screw you over, even when you've done everything right and made every single payment on time.  Some of the possible scenarios include:

The article lists a number of other possibile scenarios, but this is the ultimate take-away:

As you can see, without any intervention, miscalculation, or mistake on your part in any way, the banking and insurance regulations set for your bank have now caused your escrow account (whether pre-existing or not) to become negative, even if you already paid off your loan, due entirely to circumstances created by your bank. This occurs tens of thousands of times every single day in our country to honest and hardworking American citizens, causing many to have their home, vehicle, or investment property taken away from them illegally by the bank.

If you are in the position where you may lose (or may have already lost) your property, whether home, auto, or commercial, study any correspondence you have received from your bank. You may have the system-generated written proof of their fraudulent and illegal (per the Gramm-Leach-Bliley Act) activities already in your hand in the form of a force placed policy notification form where the effective date of the policy is older than the print date of the letter itself. Bring this to the attention of an attorney immediately.

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