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#1855964 - 09/26/13 05:32 PM Extending the Maturity Date and Force Placed Ins.
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Joined: Nov 2008
Posts: 1,065
In the mountains
Can a loan's maturity date be extended if the flood insurance is force placed but is of an adequate amount? or does a customer have to obtain their own policy before it can be extended?
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Flood Compliance
#1856038 - 09/26/13 06:32 PM Re: Extending the Maturity Date and Force Placed Ins. Likes to Comply
Al Miller Offline
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Al Miller
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
I think not. The Mandatory Purchase manual (page 41) says:

Force placement of flood insurance is intended only as a last resort, and on mortgages whose mortgagors have failed to respond to the notifications required by law.

Al
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#1856055 - 09/26/13 06:48 PM Re: Extending the Maturity Date and Force Placed Ins. Likes to Comply
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Diamond Poster
Joined: Nov 2008
Posts: 1,065
In the mountains
This was force placed as a last resort. The customer's Condo Association is obtaining an RCBAP that will have a 30-day waiting period. So we cannot refinance the loan until the new policy is effective and we cannot cancel the currently placed force-placed insurance for the same reason. The loan's maturity will expire if we don't extend it. Since the force-placed insurance is adequate, couldn't we just extend the loan's maturity out for 30-days? We are in a catch 22.
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#1856105 - 09/26/13 07:29 PM Re: Extending the Maturity Date and Force Placed Ins. Likes to Comply
Dan Persfull Online
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Dan Persfull
Joined: Aug 2002
Posts: 47,017
Bloomington, IN
Opinion from 2007

See post #809060
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