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#1825070 - 06/19/13 04:09 PM Condo Association
dac Offline
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Joined: Sep 2009
Posts: 234
We did a residential loan for a customer last year and their condo unit is in a flood zone. The policy just expired and when we contacted the customer they stated that the condo association pays for the flood insurance premium. I think we need to send the 45 day notice to our borrower and a coworker disagrees. Who should get the notice?

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Flood Compliance
#1825077 - 06/19/13 04:11 PM Re: Condo Association dac
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Your borrower. It is their responsibility to provide you with proof that "their" condo association has renewed the RCBAP.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1825079 - 06/19/13 04:14 PM Re: Condo Association rlcarey
dac Offline
100 Club
Joined: Sep 2009
Posts: 234
Thanks

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#1888189 - 01/17/14 08:00 PM Re: Condo Association dac
ynot Offline
Member
Joined: Sep 2011
Posts: 81
Florida
We have a situation similar...condo association (RCBAP) policy expired,however the borrower has a dwelling policy that is in effect although less than the total required amount for his unit. We sent the 45 day notice to the borrower. Should we end up in a force place situation, would we force place for the amount of the RCBAP or only the difference between the dwelling policy and the unit replacement cost?

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#1888199 - 01/17/14 08:04 PM Re: Condo Association dac
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
You would be required to force place the minimum required amount or an amount higher if you have an agreement with them to maintain a higher amount.

Since they have a policy in place, it makes it tricky. They can only have one NFIP policy at a time and you would have to force place a policy for the whole amount needed with a deductible as large as the current policy that is in place.

Or - declare them in default.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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