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#1492724 - 01/10/11 08:36 PM Bankruptcy and flood insurance
Tillie Offline
Gold Star
Tillie
Joined: Apr 2003
Posts: 266
Our borrower has verbally notified us of his intent to file bankruptcy.
Flood insurance on his building expires tomorrow.
Should we and can we start the notification process?
I understand there are restrictions on communicating with a borrower who has filed for bankruptcy but I do not know all the details.
Thanks!

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Flood Compliance
#1493200 - 01/11/11 06:21 PM Re: Bankruptcy and flood insurance Tillie
Lipty Lou Offline
Member
Joined: Sep 2009
Posts: 87
Somewhere in the desert!
We are in the same boat with a very large commercial property. The loan is in bankrupty and the already force placed flood insurance is about to expire. Can we continue the force placement and charge the loan for the premium? And who do we send the notice to...the lawyer?

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#1493694 - 01/12/11 02:22 PM Re: Bankruptcy and flood insurance Lipty Lou
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
The requirements of flood insurance is a matter of Law and you have to follow those requirements. In the case of a bankruptcy I would advise all notices be sent through the borrower's attorney.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1494364 - 01/13/11 12:44 AM Re: Bankruptcy and flood insurance Dan Persfull
Lipty Lou Offline
Member
Joined: Sep 2009
Posts: 87
Somewhere in the desert!
Thanks Dan...will do!!

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