Forced Homeowners Insurance from bank lender?

So, back in 07/11 We started seeing our mortgage monthly payments increase about 60.00. We looked into it and it seemed like there was a “forced insurance policy” put onto our mortgage loan. I looked into it and they are stating back in Nov. 2010 to Jan 2011, our insurance had lapsed. The insurance that put for that time being is almost 700.00.

Now, I know it’s been like this for a while now where bank lenders are allowed to do this dirty money hungry scheme (700.00 for 2 months?!?!?!?). But I do not recall any letter from them stating that our insurance has lapsed or anything or that they were going to put a 700.00 forced insurance policy on our mortgage.

It’s been so long that I don’t remember what insurance company we had at that time and have been calling all kinds of insurance companies, none of which states the right date of coverage. I just remember during that time, we were trying to find a good insurance company to sign with, and I don’t recall letting it go for 2 months without it. If they would have notified me that they were going to put a forced insurance policy on my mortgage, I DEFINITELY would not have let 2 months go by.
I did however received a letter in May or August 2011 stating they were going to charge us for it. 3 or 6 months after the ordeal.

Do they have a right to do this? To wait until 3 months later stating that they were going to charge us?

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