Bank of America May Have Forced You into an Illegal Foreclosure
A former Bank of America employee provided a hacker group, known as Anonymous, with a series of emails claiming they prove how a former subsidiary of the bank tried to hide information regarding potential illegal foreclosures. A member of Anonymous focused on the point that the system followed by banks is made to deceive the average- individual. Balboa Insurance, the bank division in question, seems to be making an effort to hide foreclosure data. The Bank of America leaked emails included discussions between Balboa employees about altering mortgage tracking numbers on specific loan documents. Bank of America claims the documents were not tied to the foreclosures, and were stolen by a former employee.
The Balboa employee also seems to have information that would contribute to a number of force-placed insurance scams. If these scams are proven, companies like Bank of America would be exposed to more lawsuits with investors because they may be pushing borrowers into illegal foreclosures. Force-placed insurance is a policy put in place when homeowners begin missing payments on the insurance policy that is required for their mortgage, and the lender may purchase insurance on the property on behalf of the borrower.The borrower is then charged for the insurance from their lender, and the rate is always more expensive than it was originally. This puts more stress on the borrower, which leaves the homeowners with little protection from foreclosure.The situation gets more interesting because Bank of America owns the insurance company, or Balboa. It seems both companies were allowing mortgage tracking errors to occur, because it seemed like a common occurrence in the Bank of America leaked emails. This allowed Balboa and Bank of America to force-placed insurance policies on borrowers, therefore potentially pushing them into illegal foreclosures.
Another aspect of this scam occurs when force-placed insurance companies (like Balboa) have back-dated the insurance by up to 9 months. Homeowners are then billed by insurance companies for insurance they didn't have. Also, no claims will ever be filed because the covered period is in the past. This is a scam yo to watch out for if you have ever had unexplained charges that show up on your mortgage after missing a couple payments, but then the outstanding balance comes up as more than your original mortgage.By filing for Chapter 13 bankruptcy, you may be able to save your home if you are worried you are being pushed into foreclosure.
The Balboa employee also seems to have information that would contribute to a number of force-placed insurance scams. If these scams are proven, companies like Bank of America would be exposed to more lawsuits with investors because they may be pushing borrowers into illegal foreclosures. Force-placed insurance is a policy put in place when homeowners begin missing payments on the insurance policy that is required for their mortgage, and the lender may purchase insurance on the property on behalf of the borrower.The borrower is then charged for the insurance from their lender, and the rate is always more expensive than it was originally. This puts more stress on the borrower, which leaves the homeowners with little protection from foreclosure.The situation gets more interesting because Bank of America owns the insurance company, or Balboa. It seems both companies were allowing mortgage tracking errors to occur, because it seemed like a common occurrence in the Bank of America leaked emails. This allowed Balboa and Bank of America to force-placed insurance policies on borrowers, therefore potentially pushing them into illegal foreclosures.
Another aspect of this scam occurs when force-placed insurance companies (like Balboa) have back-dated the insurance by up to 9 months. Homeowners are then billed by insurance companies for insurance they didn't have. Also, no claims will ever be filed because the covered period is in the past. This is a scam yo to watch out for if you have ever had unexplained charges that show up on your mortgage after missing a couple payments, but then the outstanding balance comes up as more than your original mortgage.By filing for Chapter 13 bankruptcy, you may be able to save your home if you are worried you are being pushed into foreclosure.
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