IndyMac Mortgage Holders: If you were forced or coerced into buying an excessive flood insurance policy, you may have legal recourse. Class Action.org is investigating claims that certain banks have been forcing borrowers to purchase or maintain flood insurance policies that are unnecessary, overly expensive, or otherwise excessive. While IndyMac has not been named among the mortgage companies engaging in these questionable practices, many homeowners who have borrowed from other establishments have complained that they were forced into paying the high premiums of an unnecessary, second or excessive flood insurance policy.
Forced Placed Flood Insurance Lawsuits
Any mortgage holder may be able to participate in a forced placed flood insurance lawsuit if they had to purchase or maintain:
More flood coverage than what was required under their mortgage agreements
A second flood insurance policy after an acceptable policy was refused
A flood insurance policy which exceeded federal requirements
A second flood insurance policy even though they were already covered by a condominium association or otherwise
Allegedly, some of the banks that forced placed valueless flood insurance on borrowers received commissions for these purchases, the cost of which was added to the mortgage balance, deducted from their home equity account or otherwise expensed to the mortgage holder.
Forced Placed Flood Coverage Complaints
If your mortgage company unnecessarily forced placed flood insurance policy on your home or condo, you may have legal recourse to seek financial compensation.