Complaint Review: Bank Of America - Balboa Insurance Group

You didn't say why the insurance was forced to begin with. Before passing judgement, I would ask why they forced the insurance to begin with and was it warranted.

After many months, days and hours trying to learn why my mortgage was behind I learned that Countrywide (or BofA) sent an inspector to my home (at my expense) because I contacted them last year when my payment was going to be late. They "graciously" broke up the payment over several months and the nightmare began.

After paying over $10,000 in mortgage payments, I called to make a payment to learn that 3 months of payments were due. I said this wasn't possible, told them my payment amounts and dates and was told that those payments were applied to an escrow deficiency. After questioning, I learned that they notified my insurance company, ASI, that my home was vacant and to cancel my policy. They then forced 2 policies totaling over $16,000 with Balboa Insurance. I told them the home has never been vacant, that I live there full time and can provide evidence of such. They refused any documentation and said the only way to rectify it was to send out the inspector again to verify occupancy and that it would be 3-4 months before they could get him out here. Note: They previously told me that the inspector had inspected my home each month for 4 months and reported it vacant.So why does it take 3-4 months now if he was there every month? Anyway after many people and phone calls, I learned that the inspector was going to the wrong address and finally in October 2008 (6 months after it was forced) they changed my status to occupied, told me that the forced policy was cancelled and my insurance was reinstated.

Keep in mind that I couldn't make further payments during this time because they would just take them and apply them to the negative escrow for the forced insurance. I spent 10 hours on more days than I can count to hit a dead end each time. The frustration of dealing with them was unbearable and would result after several hours in shaking, crying, chest pains and utter fear. This is the reason that many people don't contact the lenders when they are in trouble. Because hours on hold, disconnects and rude people that couldn't care less only results in no resolution and phenomenol stress on the borrower.

Anyway, this went on and on. I asked for records which were never sent even though I gave a fax number and was promised that i'd receive them. I contacted insurance commissioners to learn that I could file a complaint and it would take months that i didn't have for them to investigate.

Finally in 10/08, they supposedly credited me for the period from Oct 08 forward. I refused to pay 8 thousand dollars for the 6 months of exhorbitant insurance that should have never been placed. Each time I would attempt to set up a workout to catch up the payments, I hit a roadblock because of this escrow deficiency.

I spent yet another exhausting day of horror on the phone today to learn more info about it all. Basically, they only reinstated the flood policy with ASI not the homeowner's policy. And in October (2 days before telling me that they finally changed the status to occupied) they placed yet another $6,000 policy for homeowner's insurance. So in October, they reinstated the policy that was set to expire October 15 and when it expired, they forced more insurance on it! I have talked to them numerous times and they make it impossible to follow what they are doing. They give you bits and pieces and it depends on who you get when you call. Some agents are competent, read the record and "leak" out what's been going on. Others are like parrots regurgitating rehearsed rubrik. It's horrible dealing with them.

Today, they told me they would credit me if ASI would back date the policy so I called ASI who told me they could only deal with the agent that wrote the policy (Coastal Insurance) because they couldn't compete with them. My agent at
Coastal insurance hasn't responded to my calls (that's why I was calling direct.) I finally AGAIN contacted Coastal and became more agressive. I was told that for a second time my agent is on a 3 month leave and they apologized that she never called me back when I called last year. Coastal then contacted the ASI who said that not only could they not backdate the policy but they couldn't reinstate it because they won't insure anyone who has had force placed insurance for one year. ASI did reinstate the flood policy in October. Why didn't ASI tell me this when I called. No, they blew smoke up my skirt, having me contact Coastal and led me to believe that if Coastal obtained proof of occupancy they'd reinstate. Coastal says no way will they reinstate and further insists that they never received notice of cancellation. Neither did I.

I'm a basket case from trying to resolve all this. Today, I got hold of the office of the CEO of BofA and at 6PM MAY have gotten someone to help. He said it's clear in the record that the inspector went to the wrong address and never inspected the correct home until 10/08 when it was reported as occupied. He also said that it's so screwed up that it will take him a couple of days to get through all the conversations that I've had with them and all of the late fees etc resulting from this erroneously placed insurance. I learned that BofA has no control over Balboa and even if they tell Balboa it was a mistake, Balboa may refuse to credit me. It's a total mess and my home is now nearly a year behind. I'm in a catch 22 and my only choice has been to let them screw me out of $21,000 which i don't have to do a loan modification. It's insane. How did the banks get so much power to destroy people's lives like this? Why doesn't anyone stop this? I'm not the only one who has had unnecessary insurance forced on them through escrowed funds. Why aren't banks held accountable. Why is the government giving them our tax money to continue to destroy hard working people's lives? What has happened to the United States that this can occur?

I trusted the bank with my money to pay my insurance. they breached that trust, incurred tens of thousands of dollars of damages to me, and made it impossible for me to keep my mortgage payments current and I may now lose my home.

All the while, Coastal profited, ASI profited, Balboa profited, the bank got kickbacks, late fees and possibly my home which has significant equity. WTF is going on? What is the average person supposed to do? The government has allowed the banks to totally disempower us and leave us hopeless. I hate to say it but I just want out of this place and don't know if there's a place that is any better.

I just want to stop this pain! So when all of the judgemental people look down on someone and blame them for allowing this to happen to them, I can only say I hope that you never have to experience it.

Hello Author, The reason I no longer work for Balboa is the reason that they did charge so much. But many business do the same thing, does it make it right? no. If you have any other questions please let me know.

After the debacle of the 20,000 dollar home insurance I enjoyed for 6 months, after 240 minutes of phone conversations (not including wait times), I am still waiting for 2 things from Bank of America. I asked them the disclouse statement of the business relationship between B0fA and Balboa. B of A refused to provide that saying that I am not the customer with Balboa, they are. Balboa says they keep no records of bank forced insurance pruchases, they automatically accept and the bank itself manages the whole process.

As for comments I received, there is no question it is my fault. If it is not, I would have sued the asses of B of A, after all, I am not a stupid dead beat customer (didn't get to the 1.4 mil. house that way), just a busy otherwise occupied person, who has bigger fish to fry. This I suppose, is the cost of that lack of attention. So, those of the responses, that start to think that I deserve it, hey good for you. The day you feel that a business can buy you something 10 times its nominal cost and you dont feel bad about it, let me know.

The ex-employee who responded: Thank you for the kind response. Yes the mortgage is for 850K the house is worth 1.1 million but was insurance rerated the fair market value to be 1.4 million. I t is not in flood zone, or beach. Raleigh outside the city is very typical coverage area.

All I was venting was the sheer belief of the mortgage lender to think that this will be an acceptable practice (fleeing 400% was my tolerance limit.. LOL)

Hello,

I am a former employee of Balboa. I did deal with Bank of America up until I quit. So you had a laspe of insurance for about 6 months correct? Well how much Balboa charges for a forced placed insurance policy depends on where you live and how much the mortgage is for. I do see you are in NC so you maybe by the water and that is what is increasing your price. Did they force place homeowners, wind, or flood insurance? That depends on how much they are charging you also. I do believe it is your fault for not following on the paperwork because that is your respondiblity to do so. The price of the policy will not change. It does state in your mortgage closing documents(which I am guessing you may not longer have) that if you do not provide proof of all required insurances(homeowners, wind, flood, earthquake, etc) then you maybe forced placed with a policy that will cost more than what you can find on your own.

You didn't BOTHER to provide insurance yourself. So BoA bought it for you. "Eventually, as my homeowner's insurance was cancelled by Traveller's, the original carrier...". What in the world does that mean? Why did they cancel it? You didn't pay the premiums or the policy for the year ran out and you didn't renew it? What did you expect? The policy to last forever? So, then AFTER your insurance lapses and BoA has to go out and find you a policy, you go out and find the cheapest no name insurance company for a bid AFTER the fact. Just think, IF you HAD paid your insurance and not let your insurance lapse, BoA wouldn't have stuck you with some overpriced insurance. So I say again, Who's fault is that?

You didn't BOTHER to provide insurance yourself. So BoA bought it for you. "Eventually, as my homeowner's insurance was cancelled by Traveller's, the original carrier...". What in the world does that mean? Why did they cancel it? You didn't pay the premiums or the policy for the year ran out and you didn't renew it? What did you expect? The policy to last forever? So, then AFTER your insurance lapses and BoA has to go out and find you a policy, you go out and find the cheapest no name insurance company for a bid AFTER the fact. Just think, IF you HAD paid your insurance and not let your insurance lapse, BoA wouldn't have stuck you with some overpriced insurance. So I say again, Who's fault is that?

You didn't BOTHER to provide insurance yourself. So BoA bought it for you. "Eventually, as my homeowner's insurance was cancelled by Traveller's, the original carrier...". What in the world does that mean? Why did they cancel it? You didn't pay the premiums or the policy for the year ran out and you didn't renew it? What did you expect? The policy to last forever? So, then AFTER your insurance lapses and BoA has to go out and find you a policy, you go out and find the cheapest no name insurance company for a bid AFTER the fact. Just think, IF you HAD paid your insurance and not let your insurance lapse, BoA wouldn't have stuck you with some overpriced insurance. So I say again, Who's fault is that?