Skip to Content
Atlas Consumer Law Atlas Consumer Law
Advocating for the Rights of Our Clients Nationwide 312-313-1613
Top
Forced-Placed Insurance

Forced-Placed Insurance

What is force-placed insurance?

Force-placed insurance is hazard, flood, fire, or other insurance purchased by a mortgage lender for a mortgaged property. The vast majority of mortgages allow lenders to force-place insurance when the borrower does not maintain insurance on the property. In general, this insurance costs more than the market value of a similar policy.

When do lenders force-place insurance?

Lenders will force-place insurance if the borrower is not maintaining insurance on the property. If a borrower fails to send proof of insurance to the lender, or if the lender claims it lost or never received the proof of insurance, then the lender will force-place insurance. In many situations, any type of default under the mortgage will trigger force-placed insurance. Sometimes a trial loan modification or a Chapter 13 bankruptcy will cause the bank to force-place insurance.

Who owns these insurance companies?

Believe it or not, many lenders own the insurance companies from which they purchase the force-placed insurance. You may have even signed a "Disclosure of Controlled Business Arrangement" form when you closed your loan. These forms are used to put consumers on notice that the lender owns and uses its own subsidiary businesses to perform many tasks associated with mortgage lending, including insuring properties and appraising properties.

What can I do if my lender has force-placed insurance on my home?

If your lender has improperly force-placed insurance on your home, your next step depends on your current situation. If your loan is current and you're suddenly facing a large escrow payment, then your lender has likely force-placed insurance on your home. In that situation, contact your lender and provide proof of your homeowner's insurance.

If you are facing foreclosure or are in a bankruptcy and you believe that your lender has force-placed insurance on your home, contact your attorney to determine whether you have legal recourse against your lender. The Chicago foreclosure attorneys at Atlas Consumer Law can evaluate your loan's payment history and determine whether your lender has force-placed insurance on your home.

In some situations, this practice violates the law and you may have a remedy. Contact us to learn about your rights.

Continue Reading Read Less

Hear From Our Happy Clients

Reviews & Testimonials

At Atlas Consumer Law, your satisfaction is our priority! See for yourself what our clients have to say about working with us.

    I was so stressed out, found Atlas Consumer Law & gave them a call!

    I had absolutely NO exceptions going forward with my lawsuit against a company that harassed me for payment! I was at the ...

    Pam S.

    So Helpful & Responsive!

    Everyone at Atlas was so willing to help and so responsive. I'm so grateful for the work they put in on my case! Would highly ...

    Stephanie M.

    Results Fast!

    THEY GOT RESULTS FAST FAST FAST!!!

    Jake B.

    Can Do Attitude All the Way!

    Atlas consumer Law is amazing and they have the CAN DO attitude and will do anything to get the job done.. I highly recommend ...

    Donnie P.

    Thank you for educating me about my rights as a consumer!

    The Atlas Consumer Law Group is Awesome. They promptly took care of my issue with a creditor who tried to ignore my rights as ...

    Belinda W.

    Absolutely Amazing!

    I am absolutely AMAZED at this law group! I started a case in March and got it solved in early May! The debt collector was ...

    Aline G.

    Atlas Consumer Law Goes Above & Beyond!

    Atlas helped us within 6 months more or less and they were an awesome team. I would definitely recommend Atlas Consumer Law ...

    Llyod G.

    Atlas Consumer Law is on Your Side!

    When you need the law on you side call Atlas!

    Arlene B.

Stay In The Know

Why Choose Atlas Consumer Law?

  • Secured a Fresh Start to Thousands of Consumers
  • Assisted Thousands with Errors on their Credit Reports
  • Secured Millions of Dollars in Recovery for Our Clients
  • Eliminated Over A Billion Dollars of Debt for Our Clients

Contact Atlas Consumer Law Today!

Talk to the leading law firm in the country about your rights for free! Fill out the form below or give us a call at (312) 313-1613 and we would be happy to give you the answers you need to make informed decisions for yourself and your family.

  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.
  • By submitting your information or contacting Sulaiman Law Group, Ltd., and/or Atlas Consumer Law ("the firms"), you consent to receive automated communications, including autodialed calls, pre-recorded messages, texts, and emails from the firms, their agents, assignees, affiliates, or any affiliated parties. This consent applies to all contact details you provide, as well as to future communication technologies. Using the internet or other methods to communicate with the firms does not establish an attorney-client relationship; therefore, avoid sharing confidential information through these channels. Please note that all calls may be recorded for quality assurance and training purposes. To opt-out of communications, reply with "STOP" to any text message, click the "unsubscribe" link in any email, or send a written request to the firm's mailing address. Your continued interaction with the firms signifies your acceptance of these terms. You agree to indemnify the firms against any claims arising from the use of these communication methods. The firms are not liable for any communication failures. Disputes arising under this agreement are governed by Illinois law, with jurisdiction exclusively in the courts of DuPage County, Illinois, or the nearest federal district court. These terms are subject to change, and your continued communication with the firms implies your agreement to any such changes. If any part of this agreement is found invalid, the remaining sections will remain effective. This agreement is in compliance with the Telephone Consumer Protection Act (TCPA) and applicable state laws.