During a flood review, we discovered that a property used as collateral had an additional building on it that was not insured. The customer was notified. The customer isn't going to purchase the coverage because they don't want to pay for the flood elevation certificate that the insurance company is requiring. So we have to force-place.

Currently the insurance and taxes are escrowed. Do force-placed premiums have to be paid out of the escrow? or recalculated to include? or do we just add it to the loan like we commonly do?

Thanks in advance for your help!

Why would you not added it into the escrow? The rules say that if you escrow, if have to escrow for flood. I see no exemption for force placed policies.