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EDITOR’S NOTE: Their business is foreclosures. Anything that is capable of being foreclosed gets the treatment. Even a home destroyed by a hurricane. One of the interesting parts of this is that the Bank also put insurance on the home that was previously destroyed by hurricane Ike. What is interesting about that is that the insurance company accepted payment and insured the property as though it did exist.
All of this leads me to ponder a few things. What due diligence does an insurance carrier perform before they agree to take on a risk of insuring a home? In this case, apparently none. What about when the home was purchased or refinanced with grossly inflated values? Do they confirm the value or do they put language into the contract that will reduce the coverage to fair market value if the home is totally destroyed? What value do they put on the land?
Is there anything in the contract between the Banks and the insurance companies that would shed light on their relationship — particularly with respect to forced placed insurance where the premium is sometimes a multiple of standard premium prices? If the so-called appraised value was far higher than replacement or actual fair market value, how much will the insurance company pay if the house burns to the ground or is swept away by flood or other disaster?
Bank forecloses on home that does not exist
On behalf of Law Office of Jennifer Casey posted in Foreclosures on Thursday, November 10, 2011
Millions of Americans are facing foreclosure. It can be a frustrating and difficult to time. It was especially frustrating for one Texas man who said the bank was foreclosing on a home that wasn’t there anymore.
The property owner never missed a mortgage payment on his property. What he did miss was his house, which was destroyed in Hurricane Ike. All that’s left is the concrete frame of the home.
Bank of America moved to foreclose on the Seabrook house, saying there was a homeowner’s policy on the property and the payments had increased. The homeowner was living overseas and says he never received notification. He says he got wind of the foreclosure only two days before the sale was to occur. He hired an attorney to stop the sale, but the bank later removed his personal property from the premises, including tools and collectibles.
The bank will not comment on what happened with the man’s personal possessions. However, it apparently acknowledged the bank incorrectly placed insurance on a home that did not exist. A representative indicated the man’s account now had to be audited to determine what discrepancies need to be corrected.
Thousands of Texas homeowners face property foreclosure every day. Some have seen their debt spiral helplessly out of control and are not sure which way to turn. Those affected would likely benefit from conferring with an attorney experienced in debt relief strategies, including bankruptcy protection. The lawyer can assess the facts and circumstances and help fight foreclosure actions, while devising a strategy for a return to financial health.
Source: Click2Houston, “Bank Forecloses On Home Destroyed By Ike,” Amy Davis, Oct. 28, 2011
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