Wachovia Mortgage Holders: You may have legal recourse to seek financial compensation if you were forced or coerced into buying an excessive flood insurance policy. Class Action.org is investigating claims that certain banks have been forcing loan holders to buy or maintain flood coverage that is overly expensive, unnecessary, or otherwise excessive. While Wachovia has not been named among the establishments engaging in these questionable practices, many consumers who have taken a mortgage loan out from other banks have complained that they were forced into paying the high costs of an unnecessary, second or excessive flood insurance policy.
Force Placed Flood Insurance Lawsuits
Potentially, a mortgage holder may be able to participate in a forced placed flood insurance lawsuit if they had to buy 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 second flood insurance policy even though they were already covered by a condominium association or otherwise
A flood insurance policy which exceeded federal requirements
In some instances, it has been reported that banks who forced placed valueless flood insurance on mortgage holders received commissions for these purchases, the cost of which was deducted from the borrower's home equity account, added to their mortgage balance or otherwise expensed to the loan holder.