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Start learning 50% faster. Sign in nowLien holders will put forced place insurance onto a mortgaged property in cases where the borrower allows the coverage they were required to purchase to lapse. Lapses may be due to non-payment of premium, filing false claims, or other reasons. Forced place insurance will protect the property, the homeowner, and the lien holder. Future mortgage payments will reflect the added cost of the insurance. Forced place insurance is also known as creditor-placed, lender-placed, or collateral protection insurance.
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