Forced Placed Insurance | Elderly Couple Facing Foreclosure Claims JPMorgan Took Payments for Principal and Interest and Applied it Toward Insurance

It’s been enough to make Virginia Tollett sick with worry.

“If we hadn’t went and got an attorney, they would have auctioned our house on the courthouse lawn,” said Tollett, 72, her voice rising. “They would have sold our house.”

Tollett and her husband, Jim, 74, have turned to the courts in an effort to prevent lender JP Morgan Chase from foreclosing on the Baird home they bought for $300,000 in 2006 with the help of a $200,000 loan.

The banking giant did not respond to a request for comment.

Tom Watson, the Abilene attorney representing the Tolletts, said a judge stepped in to prevent a sale of the home, scheduled for January. The status of the house remains uncertain, however, as a lawsuit remains pending in federal court that claims JP Morgan Chase wrongfully foreclosed on the home.

“What we are alleging is they took money that we submitted for payment to the principal and interest and instead applied it toward insurance,” Watson said.

But the couple claim that they already had insurance, so the lender was wrong to take out the home insurance policy.

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