Bank told to pay $3.2M in lawsuit for 'shocking' foreclosure

[Fern]

No, I got nothing in any case. If I defaulted, the insurance paid the outstanding balance of the primary mortgage (less the resell amount) to the bank. If I defaulted owing $60K and the bank resold the house for $40k, the policy paid the bank $20k. Although I paid it, its only possible benefit to me or my heirs was in convincing the bank to loan me the money by making it very difficult for the bank to lose its money. There was no possible way that I or my heirs could end up owning the house if the mortgage insurance was invoked. (Other than by buying it at auction, I suppose.)

Ahhh...

So what you were actually doing was paying for the bank's insurance.

(Of course, you get some benefit in addition to being more attractive as a borrower: You can't have a lien filed on you or be pushed into bankruptcy via foreclosure.)

So his question isn't a bad one.

Fern

 

[werepossum]

Ahhh...

So what you were actually doing was paying for the bank's insurance.

(Of course, you get some benefit in addition to being more attractive as a borrower: You can't have a lien filed on you or be pushed into bankruptcy via foreclosure.)

So his question isn't a bad one.

Fern

That's true. At that point I had never financed much of anything, so I didn't mind paying for the bank's insurance. Otherwise I would have been a much greater credit risk and presumably would have paid a much higher rate, if I could get financed at all.

However, my point holds true for policies paying only the lender or policies paying the homeowner or his heirs. If the underwriter is getting a lucrative stream of sales through Wells Fargo, it is not going to go out of its way to help the dead guy's heirs at the expense of Wells Fargo. All the underwriter is obligated to do is to pay the claim, not fight Wells Fargo for their possession of the house.

 

[Pr0d1gy]

It's OK, because they are job creators.

I am shocked that the usual dip shits aren't clamoring to toss Well Fargo's salad over this one and cheer on the abuse of it's customers.

hahahah Classic. +1 for you Newell.

 

[AyashiKaibutsu]

Punitive damages are punitive.

 

[Vic]

Private mortgage insurance is completely different from credit life/disability insurance.

 

[TerryMathews]

Private mortgage insurance is completely different from credit life/disability insurance.

After he admitted that he has no experience with how the industry actually works I just stopped.