Nationstar At It Again?

Nationstar is the nightmare that just keeps on giving.

There is a class- action lawsuit against Nationstar and Assurant Inc. in the U.S. District Court for the Southern District of Florida.

This class-action lawsuit alleges that Nationstar has a company that they used to funnel profits to Nationstar at their borrower's expense by selling those sky high priced forced insurance policies.

When you buy a home you are required if you get a loan for the property to have at all times, homeowners insurance in place to protect the lender's interest in the property.

If you fail at any time to pay your homeowners insurance then in your paperwork you signed at closing for your house, you agreed that your lender could buy "forced" insurance on your house that only protects them. If anything happened, you would not get a penny, only the lender would.

Forced insurance is SUPER expensive. We have seen some of these policies be 3 times more than regular homeowners insurance when the short sale sellers have stopped paying insurance. Sometimes this makes your house payment so far out of reach that it seems you will never catch up.

So then your house goes into foreclosure.

In the case of companies like Nationstar- they foreclose on your property and then send the bill for these outrageous policies to the mortgage bond investors.

In the meantime- Nationstar is alleged to have made huge commissions on these forced policies at the expense of the borrowers, you the homeowner.

It is alleged that Nationstar has been trying to sell a fake insurance company called Harwood Service company for $100 million that does not even exist.

This company called Harwood Service company does not even have a website. This company that supposedly sells insurance has no independent offices.

When you call Nationstar to ask about the company, their operators say they have never heard of Harwood.

But if you call Assurance Inc which is the insurance carrier that Harwood supposedly sells policies through says that the name Harwood is just a name that is used so they can refer Nationstar business. WOW!

Harwood has been collecting commissions on very high-priced insurance policies that Nationstar has forced uninsured homeowners to buy according to the allegations.

It is been more than six years now since the housing markets collapse and this kind of crap is still going on.

Harwood has collected more than $40 million last year for more than $200 Million worth of insurance on homeowners.

Nationstar has decided not to fight this in court. Nationstar has declined to speak about Harwood. I do need to say that Nationstar is not the only servicing company that was involved in this kind of a scheme. So is Walter Investment Management Corp who is the country's third- largest servicing company.

If you or someone you know has forced insurance on your home, you may want to look at your options to do a Florida short sale.

Contact Nestor Gasset at 561-541-9936 for a confidential meeting about ways to avoid foreclosure.

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