Navigating the Complexities of Lender-Placed Insurance: A Homeowner’s Guide

Have you ever received a mortgage statement only to find that your monthly payment has inexplicably skyrocketed? You’re not alone. Many homeowners are blindsided by the addition of lender-placed insurance, a practice that can leave you grappling with soaring costs and a sense of powerlessness over your own home. But fear not! This guide will walk you through the ins and outs of lender-placed insurance, equipping you with the knowledge to navigate these murky waters.

Introduction to Lender-Placed Insurance

Understanding the Basics

Lender-placed insurance, also known as force-placed insurance, is a policy that your mortgage lender can impose on your property. This often happens when your own homeowner’s insurance lapses or doesn’t meet the lender’s standards. While it sounds like a safety net, it’s a net that comes with some pretty hefty weights attached.

When Does Lender-Placed Insurance Apply?

This type of insurance typically kicks in under two scenarios: if your insurance policy lapses or if you’re suddenly in a high-risk zone, like a flood area, without adequate coverage. It’s the lender’s way of ensuring their investment is protected, no matter what.

The Financial Implications of Lender-Placed Insurance

The High Cost of Lender-Placed Policies

Here’s the kicker: lender-placed insurance is notoriously more expensive—often exorbitantly so—than a policy you might choose yourself. We’re talking a difference that’s not just a few dollars, but potentially hundreds or even thousands more per year.

How Lender-Placed Insurance Affects Your Mortgage

This isn’t just about coverage; it’s about your wallet. When your lender slaps a lender-placed insurance policy onto your property, your mortgage payment can balloon to cover the steep costs. It’s a financial curveball that many homeowners are ill-prepared to catch.

The Homeowner’s Lack of Control

No Say in Coverage

One of the most frustrating aspects of lender-placed insurance? You get no say in the matter. The policy is chosen without your input, often lacking the comprehensive coverage you’d want while protecting the lender’s interests.

The Struggle to Access Policy Details

Trying to get your hands on the policy details can feel like an exercise in futility. Homeowners often find themselves in a tug-of-war just to view the insurance terms that they’re now financially responsible for.

Behind the Scenes: The Lender’s Perspective

Protecting Their Financial Interests

From the lender’s viewpoint, it’s all about the bottom line. They’re safeguarding their investment, ensuring they’re compensated in case of damage to the property. But is there more to the story?

The Question of Kickbacks and Incentives

The discussion veers into murkier territory with the suggestion of possible financial kickbacks to lenders for placing these policies. While it’s speculation, the significantly higher costs of lender-placed insurance raise some eyebrows.

The Real-World Impact on Homeowners

Personal Stories of Financial Strain

The conversation turns personal as homeowners share their stories of financial hardship brought on by lender-placed insurance. For some, it’s a tale of stress and struggle, with mortgage payments doubling without warning.

The Domino Effect of Increased Payments

The repercussions of increased payments can be severe, leading to defaults and foreclosures. It’s a domino effect that can upend lives, turning the dream of homeownership into a financial nightmare.

Legal Considerations and State Variances

Foreclosure Processes Across States

The legal landscape varies widely from state to state. In some places, like New York, the foreclosure process is a lengthy judicial affair. In others, like Georgia, it’s a swift non-judicial procedure. These differences can significantly affect how lender-placed insurance disputes play out.

The Role of Legal Representation

Having an attorney like Zakiya Watson-Caffe, Esq., who understands the nuances of lender-placed insurance, can be a game-changer. Legal expertise can help homeowners challenge unfair practices and navigate the complex legal system.

Proactive Measures for Homeowners

Staying Informed and Vigilant

Knowledge is power, and in the case of lender-placed insurance, it’s your best defense. Staying on top of your insurance policy, understanding your coverage, and knowing your rights can save you from unexpected financial burdens.

Tips for Managing Your Insurance Policy

The advice is clear: be proactive. Review your insurance policy annually, communicate with your lender, and if you’re in a high-risk area, make sure you have the necessary coverage. It’s about taking control before someone else does.

The Role of Brokers and Lenders

Steering Towards Specific Insurers

Brokers and lenders can have a significant influence on the insurance policies chosen for homeowners. The relationship between these parties can sometimes lead to homeowners being steered towards specific, often more expensive, insurers.

The Importance of Good Relationships

Maintaining a good relationship with your lender and insurance broker can be beneficial. It’s about building a rapport that can lead to better communication and potentially more favorable insurance terms.

Conclusion: Empowering Homeowners Against Lender-Placed Insurance Pitfalls

The Power of Knowledge and Advocacy

Arming yourself with knowledge and advocating for your rights as a homeowner can make all the difference. Understanding lender-placed insurance is the first step in protecting yourself from its pitfalls.

Final Thoughts and Next Steps

As we wrap up this guide, remember that the journey of homeownership is filled with challenges, but with the right tools and information, you can navigate even the trickiest of insurance waters. Stay informed, stay vigilant, and take charge of your homeownership story.

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Transcript:
(00:01) I’m gonna take you out for a second uh live from Long Island New York hi I’m Ryan O’Neil Williams and right below me is my uh co-host uh Agnes amisano how are you doing Agnes good to see you good to see you too I’m doing wonderful wonderful wonderful great great I have to tell you I have to remind you that um I had a a had an expected visit from my old classmate from high school yeah it was such a pleasure yeah it was such a pleasure to spend time after 30 plus years not seeing each other and seeing how how wonderful musician he he
(00:51) became and and a father figure it’s you know like we were staring at at pictures from high school like who we were then and who we are now it’s such a huge difference but it’s uh it’s inspiring and it was it was very very nice to see him all right good good I’m a I’m I’m not surprised that you had people over because I know you love to entertain but I I know you were a little uh uh not anxious but you were definely apprehensive about this visit you weren’t exactly sure because that’s
(01:33) great to hear that it went very well anyway yeah yeah it was it was fantastic Beautiful Surprise yes excellent excellent so very ve ve very much a welcoming thing um ladies and gentlemen we’re GNA talk today with an attorney um attorney Zakia Watson cafy uh Esquire from well she’s originally from New York but she practic in both New York and in Georgia and we’re going to be talking about something that can affect anyone who has a mortgage anyone at all who has a mortgage because the truth is we’re all out here
(02:15) trying to make ends meet and so are some of these companies and sometimes uh the legal wranglings of what’s going on with your mortgage are not exactly what you would expect so in just a second we’ll get going and then I’ll introduce you to uh Zakia Watson Cafe Esquire right um here we [Music] go hello hello and welcome welcome Zak how are you doing it’s great to it’s great to see you again great to see you too how are you I love love yeah yeah it’s a it’s a it’s a nice one do you know what that’s from where
(03:14) is it from do we know sometimes people don’t always know uh SW it’s supposed to be swah I mean I never looked it up I was told uh it was swah hilly for intelligent my first name yeah talk about on the nose yeah so yeah uh so um I met uh Sak father um about two about two years ago yeah when I was bouncing around and uh he uh introduced us and uh basically I’ve been doing a little bit of work for her online work um but when we were talking she brought up this really interesting uh case that she’s working
(04:03) on this really interesting issue that she is work interested on and I was like whoa I didn’t realize that this is something that could happen and it’s something that can affect any mortgage any person who holds a mortgage any person who has a mortgage lender who is lender to to lender to them uh so the the amazing thing is that we should all know about this but most people do not because there’s so many intricacies I mean when you’re signing a mortgage Zakia isn’t it like like a 50 page document almost every single time
(04:48) yeah there’s lot well 50 would be a quick one would be small yeah usually us it’s usually closing and obviously it depends yeah okay when you go into the closing yeah yeah but it can be depending you’re depending on having a good attorney deid yeah that too that too it depends on the SI it depends on what state you’re in New York is one of those states where you have more protection um Georgia uh usually it’s just a lender that has attorney at the closing most of the parties don’t have uh which is very very different than New
(05:35) York in New York usually everyone has uh the buyer the seller and the lender um all have attorneys that represent them nor in closing okay so that I guess makes it more possible that some people just don’t know what is happening because they may not even have proper presentation but then also during the course of owning a home you’re just hoping you’re going to pay your your your bill and just receive yeah keep living where you are right you’re not looking for ay there’s going to be a problem or there’s going to be a
(06:12) situation most of the time you’re trying to get there but then you explain this problem to me about lender placed insurance can you explain to us exactly what lender placed insurance is so lender placed insurance is Insurance that’s that is taken out on your property by the lender so traditionally what happens uh is the homeowner will uh obtain homeowner a homeowners insurance policy um on their own and they’ll usually look around for the best rates considering on uh what their needs are and they will present that to the lender
(06:55) and the lender will be added as a beneficiary along with the homeowners to to that uh policy however um in the event that you do not maintain um adequate insurance or there’s a lapse in your homeowners insurance the lender uh has the ability and will exercise that uh ability to uh Place insurance on the uh place a home place insurance on the property to ensure that their financial interests are uh covered in the event that something happens so home okay so basically they’re putting additional Insurance on your
(07:36) home so it’s usually done only in certain circumstances it’s it’s supposed to be done when there is no homeowners current homeowners insurance on the home that is adequate so either uh most common the most common situation is that the insurance policy has laps so there’s no insurance on the on the property but there could be one uh situations where you’re are designated as a flood zone by FEMA and you don’t have flood insurance so that would be inadequate insurance so yes they can they are authorized to do
(08:08) that and for good reason if you’re if you were the bank you would want to make sure that your assets are covered and they do that with uh lender Place Insurance okay okay to me it sounds like a good thing to you know off the off the cuff like in the beginning here you’re explaining it to me it sounds like they’re getting you additional insurance it sounds like a good great it sounds like a great deal almost like they’re looking out for you right Agnes well um to to me kind of like that was normal because to every single
(08:43) policy that I have my mortgage compan is assigned to as well like mean that that they need to protect their their interest it’s not only I’m I’m making sure that I have insurance on my property um but they are like Co benefit beneficiaries right right the co- beneficiaries on on the policy you have to have that yeah right so you do have to S sorry no no go ahead go ahead oh I was saying yes so they they are have right that’s normal anyone that has an interest in the property so obviously the homeowners because they own the home
(09:25) uh and then if you have uh a mortgage on your property they have a financial interest in the property so anybody that has an interest in the property is supposed to be a beneficiary on it and banks will make sure that they’re a beneficiary on your policy they’re Ben of course that they’re a beneficiary but so what’s the problem here if uh if they’re putting this new insurance on my on my mortgage basically to protect themselves and protect me what is the issue so it does it so that’s two things
(10:02) um number one it you are paying the cost of that insurance and that’s usually the big issue I as many years as I’ve been doing this I have never seen a I have never seen a lender uh uh placed insurance policy uh on a property that is less than um what the homeowner originally had and it’s not pennies it’s usually hundreds of dollars more uh or thousands um more than uh what a homeowner uh would have on their property so so basically what you’re saying is your mortgage payment is going to go up
(10:43) because this insurance is going to get substantially uh it’s G to go it’s either the mortgage payment or if assuming that you have it as part of your mortgage payment so um generally uh you your mortgage includes your principal interest obviously you uh most mortgages will also have what’s called an escrow uh which you pay into every month and the lender will um hold those funds and pay third parties on your behalf so what’s usually in that escrow account are the funds for your uh annual taxes
(11:17) on the property your property taxes and um also your homeowners insurance policy so when your homeowners insurance policy is due let’s say it’s due December of every year they’ll take money out of that that you’ve been putting in they’ll take the money that you’ve been putting in into that escro account and and pay your uh homeowners insurance the company that you have chosen so what happens is uh when they put their own insurance policy um because either the insurance policy has lapsed or you have inadequate
(11:48) insurance or whatever the reason is uh that authorizes them to exercise that right you um being forced to pay that new policy and if it’s hundreds of dollars or thousands of dollars more you’re going to see that increase in your mortgage payment okay okay all right so definitely it’s possible that your insurance increase in your insurance is going to make sure that you pay more so if I’m paying my mortgage and all of a sudden Agnes your price goes up your all of a sudden you there’s there’s an
(12:24) additional charge it could possibly be because the insurance has changed and someone has put lender Place insurance on my on my mortgage instead of the one that was there before you know personally personally I went changes with insurances not that not that long to go um number one the flood insurance it’s going the the rates although I’m not in a flood zone the insurance rates are going up and up and up for no reason at all and uh when I try to change that insurance they say oh yeah sure you can go to the uh private
(13:04) sector but when something happens doesn’t mean they’re GNA pay out so that’s scary because you might end up with the big damage and no money being paid out to you for that insurance uh when I bought my first home that was the insurance like Zak said it was it was so high that that automatically inrease the mortgage payment because everything was um together combined so it was couple hundred more until I started doing research and I changed insurance companies um out of state that automatic automatically and and I kid you now
(13:48) there was couple thousand less a year thousands thousands so that saved me thousands less yes so yes that’s a a wonderful point that you making Z is insurance you have to watch exactly you have to watch what you’re saying what kind of insurance what you in the last two years um my insurance company actually just included um insurance for um Act of G Insurance otherwise I had to have that separate because they would just only cover fire uh then then you have to get flat and if you have a tornado God forbid that’s not gonna happen oh and
(14:35) uh they they just told me actually if if tornado will rip my roof off and I have a leak inside the house they will cover but if there is just a leak through the roof without Hall being damaged through the tornado they’re not gonna cover that which to me is fascinating so so Zaki I guess what I’m gonna ask you next is are they putting Insurance on your house that is actually covering all the the the the eventualities all the problems when they put this lender Place Insurance because that seems like the
(15:15) second danger to me number one now I’m paying more and I may not even have the money to pay more but secondly now I’m getting this other insurance that I did not choose that I did not take the the time that that Agnes took to put you know carefully and get all the coverages on my insurance is it possible that they could put something that is Le less than what you would actually desire as far as coverage is concerned I can assure you that whatever insurance they place on is not one that you desire at all it’s just
(15:51) not um so they they’re not going to look at your policy and say well this is what she had this is what she wants no that’s that’s not they’re going to look at a policy that’s in their best interest are they going to get paid in the event that you know there’s a fire are they G to get paid in the event that you know there’s uh water damage things like that um they want to make sure that the that the them the mortgage company is going to be paid um in the event that there’s some type of devaluation of of your home
(16:24) or the home becomes inhabitable or you know the home goes into foreclosure so these AR they’re not you’re not involved in the negotiation of this uh insurance and and um whether or not they even um there’s any benefit to you uh is up it’s up in the air um sometimes it’s even difficult even after they place the insurance despite the fact that you’re entitled to it to even get a copy of the policy to say okay well what’s in this um that in and of itself is sometimes um a fight with the uh lender or their Servicing
(17:02) Company then okay so my difficulty then is they’re they’re supposed to be covering so that they are also covered right they’re covering their the you know their interest why would they do this what what would make a company decide that oh okay I’m going to take this insurance off I’m G put this insurance on or maybe not take it off but I’m going to take the first opportunity I can to put this insurance on instead and then charge you more for it but it may not necessarily be covering everything
(17:47) that we need there why would why would a company do that so I can speculate um I it depends on the company um I mean first and foremost they you know it’s legitimate it’s a legitimate interest to want to cover your interest but their interest starts and stops as in the financial world right they want to uh protect they have a a mortgage against the property they want to uh protect that uh mortgage that they have on the property that encumbrance that they have on the property they are not living in the home
(18:20) you know they’re not concerned with you know neighbors and things like that their interest is is for the most part strictly Financial um so you need to look at it their policy is going to read uh to their interests that’s number one number two um you know again speculation but uh you know we believe that there are Kickbacks um from the insurance company again um I um you know we’ve seen situations where clients mortgage uh will payment will double from from you know a few thousand 2,000 to 4,000 because you know this
(19:03) lend of place Insurance uh has been uh placed on the property and so there are a number of reasons I’m not you know each case is different but I I would suspect that there’s some type of financial Kickback or uh benefit to the to the lender um to to do that you see how she’s being diplomatic you and I could say something crazy Agnes like yeah they’re trying to get more money or um uh they’re trying to you know force you to pay Miss a payment and get kicked out of your home but she’s not going to
(19:34) say that because she’s an attorney and like the real deal kind of attorney right that’s fascinating but yeah what do you think through my experience through my experience I noticed that actually the relationship that the Brokers had with the lenders that they kind of steer to which insurance company they’ll be using and when I when I told you about the the experience that I decided to change and save myself a couple thousand dollars a year I had to get a permission from the lender to change the insurance company
(20:10) thanks to the good relationship that I had with the broker and broker had with the lender they allow me to do that otherwise I’ll be paying over $3,000 more a year over $3,000 more that’s a lot of money to pay for the insurance a year yes so in like Zak mentioned yes they you have to yeah when you’re choosing your own insurance then you using not only that replace replacement of your mortgage but you’re using uh for if you have to that’s something happens your hotel will be covered for a couple
(20:49) of months or you can replace your fence or you can replace something that you have on your yard you have certain money accumulated for your personal belongings your clothing your furniture and that is your best interest nobody else will be looking after your best interest um especially not the lender because they will just want to recover what they lend you for the inves right it sounds to me like you’re literally saying the lender is directing and the the the broker are directing one another and based on I
(21:25) mean it makes sense that they have a good relationship but it might be that they have a monetary relationship and then there there is that what we’re we’re okay we’re alleging that celor is that possible no no we don’t know we don’t know because each each company is different um but again I I started uh at least in the Foreclosure world in in New York representing um homeown owners that were uh affected by the housing crisis a lot of them ended up in foreclosure for number of reasons but um Force Place Insurance uh Linda uh
(22:09) Place Insurance uh was something that you saw all the time because they were they were no longer putting money into the escrow account because they weren’t paying they weren’t paying the mortgage at all and so you know it’s again the the fundamental issue is not that the lender is placing insurance on it how it’s done and when it’s done okay so the issue and what type of policy they’re choosing as well okay okay so basically you’re saying it’s not that they they’re they’re not allowed to
(22:42) do this it’s just that it seems to be how they are doing it right it seems to be almost a I’m going to use this word a predatory um yeah yeah feel predatory because again I’m trying to like rack my brain and I do not I cannot recall even a a single case where it was a minor change it’s always something substantially more always and so the client is T is uh tasked with paying you know if they want to get their mortgage back on track or they want to pay you know the rares whatever uh to try to get back on
(23:25) track they have to account for this this this ridiculous policy uh that the lender has uh now placed on uh the property and you would think you know with all of their connections in the industry that they would be able to get better deals but it’s always substantially more than what the homeowner can literally get just calling up the first company on Google um and so it’s there’s such a stark difference between what you know you as a homeowner can do as far you know as finding appropriate Assurance for your property
(23:56) versus what the uh lender decides to to place uh the policies that the lenders place on the policy okay so I’m seeing you staying cool about it but I know you have a passion for defending people who are in these kinds of situations in general um that uh H from defendants who find themselves in in trouble and it might be a minor minor thing but right right now like you said you you actually told me about this that there are people waiting in court for things right now because there’s a lot of people lined up
(24:39) in court in Georgia for all kinds of things and some of us may actually know what those things are uh that it is a possibility that someone’s who who who’s getting a simple summons and couldn’t afford to get out of it because they didn’t have the money they’re sitting waiting for 60 30 60 90 days because Justice is just not moving quickly enough for them right right so uh again this is a situation with respect to mortgages this is a situation where New York and Georgia are very different I started in
(25:17) New York which is a uh practicing in New York which is a Judicial state uh which means that you pretty much go through the normal process when it comes to foreclosure normal in our world um meaning you know there’s a summons there’s a complaint there’s you know you go through the discovery or the evidence exchange it so it’s it’s a extensive process to uh for a lender to get actual possession of a home in New York you have to go through the uh you basically get due process in New York when it
(25:47) comes to okay it’s not the case at all uh we have uh it’s a this a title state or this is a title state where there are certain notices that are um required uh you do sign a waiver um at the closing um that uh allows them to essentially FasTrack the foreclosure process here and so it’s a lot faster and that can be detrimental um when your mortgage goes up I I can speak for uh what we uh experienced personally um our mortgage on property uh where we did have an escrow went up from I think it was like a thousand to
(26:33) about 1,800 because of lender placed Insurance wow um and this was a situation we had not defaulted on the loan we had not uh so the the escrow account was properly funded to cover our insurance policy when it came due uh but the lender decided didn’t want to pay it and as a result of that um um our mortgage went up almost double um on on this uh investment property that we uh had and so um we were okay in the sense that uh we were able to cover it and not default before you know the issue was resolved um but you know everyone
(27:25) doesn’t have that and there’s you know again there’s a big they shouldn’t have to uh you know unexpectedly have their mortgage go up uh for no other reason other than you know the lender either intentionally or negligently uh causing you to go into default uh on the mor on the insurance see you went exactly where I was trying to go I was GNA ask you exactly about your personal experience and that’s the reason why she’s passionate about this not just because it touched her but I think that that’s
(27:59) what you doing you were you do a lot of uh Tor defendants uh you you know for for crime in that area you’re mainly um your mortgage and these kind of litigation actually you’re litigation expert a litigation attorney yes but then on top of that you do do some some uh some defendant work I do uh so I do l i do civil and criminal which is everything uh when you say it that way but uh in the Civil World um I I don’t do everything mortgage related I do right now I’m doing this lender Place insurance issue right um in addition to
(28:41) that I mean I do a lot of uh contract matters breach a contract things um that’s usually it someone either breached a contract and they’re trying to enforce it or uh vice versa uh or somebody’s being sued because they’re being uh accused of having uh reached contract but um when I say civil that’s primarily what I do business um and this kind of it touches on that that you know outside of me um having my own personal experience I mean we had the mortgage is at the end of the day is a contract and
(29:13) they agree to do certain things the lender agreed to pay the uh taxes and notably they pay the taxes because the taxing agency takes precedent uh right and a for close they didn’t forget that when it came insurance that was way cheaper um they magically forgot and um you know we were lucky because we have a broker insurance broker that called us and said hey your lender didn’t pay and we went ahead and paid them um you know the for the full year um and you know called the insurance company told them you know
(29:50) this is what’s happening and it was it was hell for months and I I just can’t imagine a homeowner that’s you know struggling to make it or you know not struggling I mean mortgages are are are usually your biggest expense for double um that’s that’s substantial um and so like I said we were we were extremely lucky I don’t take that for granted to be in a financial position where we were able to um make those payments for months before bringing suit but it shouldn’t be that way it should we
(30:21) should not a homeowner who is paying diligently and and doing what they’re supposed to do holding up their end of the bargain shouldn’t be uh suddenly you know rewarded by having you know their mortgage doubled because whatever reason um because of something that the lender did that was uh incorrect A Agnes imagine that she’s an attorney and they did it to her property anyway you know what I mean that’s that’s in my mind I’m just like oh did you not it’s like you you’re gonna go and and mess with
(31:01) the person who and you’re looking at the deed well I guess they didn’t right I guess they’re not even checking they I’m sure they didn’t research before they start with Zakia they didn’t research what she’s doing for a living otherwise they would step back and would not touch her at all but um see she was she was that’s great that she was able to take care of that herself right what um I know like in New York you’re not going to see that but then you will I experienced myself in the past when
(31:31) mortgage companies were pushing practically terrorizing uh if you have some money in your house why don’t you use it making trying to make you feel like you are a horrible person that you don’t want to take that money out and use for travel for for whatever just to take more just to take more just to refinance and to have adjustable mortgage rates and then two years later you were in trouble and you are and you’re losing your property a lot of people lost properties in New York they were not able to do as easy the Lend
(32:08) their place Insurance in New York but then companies were attacking homeowners from other sites and ruining their you know their deos that they have they have steady rates and uh if you refinance you adding additional cost to your mortgage at least $110,000 and then then of course adjustable mortgage rates which put you in trouble because you never know what what’s going to happen in life now it’s okay you don’t know what’s going to happen in your life two years from now right so then your mortgage
(32:41) automatically doubles and then you’re in trouble again so a as a homeowner you have to be really on your toes yeah that’s um I’ve during when I was in New York that’s actually that was actually the CR of of what we dealt like I said we London Place insurance comes along with foreclosures because again you’re not paying and so that that comes with it uh but yeah I I had clients that sign second mortgages at the closing and didn’t know that they had a second mortgage I had because it wasn’t being
(33:14) described to them or you know they didn’t have an attorney that had their best interest uh at heart um because sometimes certain industries are are a numbers game and sometimes real estate can can fall into that um it’s not closings don’t you know pay uh a lot of money and sometimes it’s a number game for um the representatives but um I don’t know I mean I haven’t done that uh foreclosure litigation in New York in a while so I don’t hoping that the culture has changed uh but I I do remember when I
(33:54) got in I I will say it was at it was it was at the it was the downfall or what the effect of uh you know the the the mortgage collapse um and so I got to see yeah people taking out second I had client that had a third mortgage which was more than and second never seen this before and it was substantial like just under a million uh third mortgage uh so I’ve seen third mortgages rarely but rarely do you see it so high that it’s more than the first two combined so they were just letting they were allowing
(34:33) people to take out money knowing that they would not be able to pay it back right and um yeah then they would end up yes like the like uh Agnes said the adjustable mortgage is where they weren’t they didn’t understand what they were you know they’re signing it and it says 3% and then you know they get their third payment and now it’s up to 20% you know it’s um it it was definitely a tragedy um and you know we we were able to help a number of homeowners come out of that um negotiate mortgages facilitate a sale where at
(35:11) least they would get some of the proceeds and things like that okay all right so if if I’m looking out for this agus is it seems like you’re always on it you’re like paying attention all the time actually that’s a big deal in Long Island like I I know at the end of at the end of like December people start gearing up and lining up sometimes sleeping outside of buildings to pay their their their uh their property tax I know it gets a little crazy out here regardless um but in general I’m looking for this I
(35:46) want to make sure that this is not happening to me what document where do I look for this how do I find out if my insurance has been changed um I I assume the first thing you notice is a change in how much you’re actually paying for your morgage but then also what other you know uh uh indicators would there be if I want to make sure that this is not happening to for me the the one thing that saved us like uh was our mortgage broke our um insurance broker so I would say if possible develop a relationship with an insurance
(36:27) uh the insurance broker um to you know so that it should something happen that they will reach out to you and and let you know hey your mortgage company didn’t pay like they were supposed to um I would also check on your mortgage um periodically once a quarter twice a year it’s not anything major but you can just call the company uh that uh you have a policy with and kind of just go over the policy what does it cover again you know when does it expire you know what is the new rate going to be uh when you know
(37:01) when we renew and keeping that communication open will let you know that the the policy is still active um you also want to make sure that the lender is uh on the policy so during those conversations that’s what you can do if you want to be more diligent you can do it once a quarter uh but I I think twice a year is is is enough uh to stay on top of it okay right and you happen to get into trouble with it I guess they’re calling you right they’re definitely calling you say hey I’ve got this issue can I check it out um you want to
(37:36) give them a number what’s a good number to call you at um you can reach me at my office number which is 44600 1771 excent um my website I also have a webite I don’t know if we to discuss no we don’t we’re ready for it go ahead there you go Insurance scam.com because it is indeed a scam right until lenders find a way to come to use their massive power to reduce rates I I look at it as scam the whole thing but yeah if you’re having issues and you um and you need help or even if you just have some questions hey this happened to
(38:22) me we we’ll be happy to talk to you and uh help you through that so so uh I can um assist you regardless of where you are in the uh country so just give us a call and if I can’t assist you I I do have a wide uh network of other attorneys that may be able to assist so um please give us a call or visit our website right and you’re kind of looking at this as this is not just happening in one place two places this is kind of a an ongoing pattern that you’re looking for right you think that this is
(38:56) happening in more than one place definitely in Georgia and New York but then on top of that to multiple people with multiple lenders it’s definitely uh I didn’t get too much into it but yeah it’s definitely happening uh throughout I know it’s happened in multiple States because I’ve seen some um other cases where the uh attorney general from the state so basically the state brought an action against the lender um for these uh these issues so again it’s it’s uh the issue is I don’t know if I clearly
(39:27) explained is when the lender is placing Insurance on um on mortgages uh or obtaining policies forcing the homeowner to pay it in situations where they should not be required to pay it so it’s where there is no lapse or they have created they being the lender for the Servicing Company has uh caused the lapse to happen by not paying it despite the escrow account uh being properly funded and the benefit or will benefit or the result of this can be one that the person cannot afford to pay their actual mortgage now because the the
(40:04) price has gone up then two they could go into default but also three if something happens to the home and the insurance that they have place doesn’t actually cover the things that are most essential for that particular home that then now you’re really in trouble because you can’t afford to pay for a home that you can’t even live in because your insurance won’t cover whatever um fix uh repairs are supposed to be done right did I did I sum that up right did that make sense yes I mean at the core of it
(40:36) in my opinion it’s just a breach of contract you agree to pay the mortgage they agree to uh you know take a portion of your mortgage whatever that is $100 a month or $200 a month um $ th000 a month in Long Island um to pay taxes Insurance sometimes the HOA is in there it’s rare but it happens uh but to pay third parties on your behalf and so long as you’re pay making the payments as agreed upon um they are required to to pay when the payment is due and when they fail to do that again whether intentionally or
(41:09) not causing you to go into default you shouldn’t have to suffer those damages so yeah uh it can be all of those things or more uh and and the issue is you know um in my world things tend to move you kind of tou on it they they tend to move slow so you know you have maybe you can make the first payment but you’re now nine payments in and you know your payment again ours we’re in Georgia is a a we got a great deal on that property uh but it went from like I said you know $800 more it went up $800 almost doubled our mortgage and so it’s
(41:51) um to being forced to pay that type of money over you know the course of of however long it takes to go through the process of trying to fix it with your lender trying to uh bring a court case the courts being packed here depending on what county you’re in um all of that plays into it and all the while you know you mentioned all those things your credit can is also going to take a hit if you’re not paying your mortgage so um it it has devastating um consequences when lenders do this and a lot of people
(42:24) don’t realize that they have rights that they that you know they they too can enforce that mortgage agreement it’s not just for the mortgager right right so if they’re looking to do that you think that something like this is happening uh uh Who you gonna call you g to reach out to lender place in J scam.
(42:43) com like the that one sorry have no idea how lucky we are that we actually in New York because we are more protected at the closing um we we sign a lot more but everyone is every single part is required to have an attorney pres Title Company it’s extremely aware of a lot of things that’s why you pay them for extra insurances that they will take care of of everything but uh like Georgia like Florida in a lot of many states it’s so easy just to go you sign and you move on and you think you going to live in your
(43:21) dream home Forever After and and very happy and then think start coming I mean we didn’t even have time to start talking about how people are stealing Deeds um how it there’s so many different scams going on right now for homeowners that we do have to be very careful yeah so excuse me having good relationship with uh with your insurance broker is one thing but to know someone like Zakia that’s the key to success with any problems then we can all always always reach out to Zakia so yes that that that’s wonderful you’re doing
(44:00) wonderful work and I’m sure a lot of people’s very happy for and and very grateful for your help thank you thank you I’m very proud but listen her her dad’s not my age but he’s a little bit older and so uh when he told me my my daughter is going turn very very proud of you and then when I found out what kind of work you do because I Snoop around on the internet I see everything because I’m checking on people’s websites and you know their ratings on on Google and everything I’m like oh
(44:33) this person is she’s getting it done and so yeah ladies and gents if you are looking for an attorney in in in in Georgia are you’re looking for definitely someone who doing some mortgage stuff here in New York you you check her out and find out what do uh the show is of course love death and taxes I guess this was a taxes episode right Agnes I guess that’s where we’re going absolutely right and um if it is uh sponsored by New York tax resol NYX resolutions.
(45:08) com which is a tax resolutions and bookkeeping that’s where you’re going if you’re going to be speaking with um Agnes regarding uh issues that you have with taxation especially if you have not been paying them you own a business and they’re coming after you you’ve getting those calls you getting the emails you getting that register slip in the mail about what’s going on with your taxes from uh from the um the IRS uh if you are hoping to come on the show or hoping to have us speak about a specific uh topic you want
(45:40) to reach out to us at mailbag ldeath and taxes.com because we’ve got our email boox it’s just waiting for you to send us some of those some of that information um we are now oh my gosh we are now on Live Well it’s not live it goes on like the next couple of hours but uh we are now on Amazon music we are now on Spotify we are now on um uh Apple podcasts and Google podcasts as of this week so if you want to listen to love death and taxes in your car or however you you consume podcast you can now request for that and look for it and
(46:31) then you’ll be able to hear all of this information that zakiya explained a second or a third time because I know some of you might need a second or third explanation for this but it’s good stuff it was good stuff yeah I think I thought we’re we’re looking for issues that you know could affect people in this time right right now we have a problem right in general money is doing this wicked crazy uh uh a fluctuation uh crypto is unreliable might all all but be gone um all those nfts that whole new money situation is
(47:19) all of that is tumbling down uh if you are putting your money anywhere to me sounds like real estate Still Remains one of the things that you should definitely be putting your money into right right so it is what it is but ladies and gents um Zak is there anything special you want to tell people right before we get to go um no I’m trying to think like did I forget something should say something but no just I the short of isit if your mortgage goes up on it inexplicably give us a call so right right so be careful
(47:57) exactly and Agnes you have anything jind you have anything to say we because they watch it it’s not a question iseki we have like this this dual uh people who watch we got some people here who watch in the United States then we’ve got a whole contingent of them who watch uh in in Poland as well because that is where uh uh Agnus is from then I I get the Jamaicans too but it’s not as many of them like what is Ryan doing I don’t know what that is watch most of the time I think it’s like oh I’m not gonna spend my bandwidth on
(48:39) this right here r on YouTube but it is what it is uh thank you so very much for uh bringing this to our attention um when I heard about it I wanted to talk to you about it and so um everybody who I have spoken to uh is like what this is happening how do and some people I’ve had to explain it three times to so I’m really happy that you came on and did that and explain it for us so I gonna say thank you so very much for coming on today uh again ladies and gentlemen you’re G to go to lender Place Insurance Scamp if.com if you are
(49:16) looking for more information about this particular issue or you just want to reach out to Zaki if you’re in Georgia in New York and you want to get some U Top Notch legal work done okay all right that’s it for us today ladies and gents thank you so very much thank you Agnes thank you again Zakia all right you guys take care I see you next week