If you have a mortgage and you let your homeowner’s insurance lapse, or the bank servicing your loan (“the servicer”) lets it lapse, that very same bank can legally order new insurance called “force-placed insurance” for you. And surprise. It’s not cheap. Just ask Hilda Sultan, of Florida, who was billed $33,000. (see video below)
As a mortgage loan originator for almost a decade, I have never dealt with this in my practice until it happened to one of my past clients. I tried to research the subject objectively, but the further I got, the more examples I found of this inherently abhorrent scam.