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#2060464 - 01/26/16 02:19 PM Force Placement Amount Question
clarkgriswald Offline
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Joined: Oct 2014
Posts: 51
We have a HELOC that we are going to have to force place for flood insurance. The lesser of three number is the outstanding principal balance of the loan. Is "outstanding principal balance" defined anywhere? This particular borrower has a $20,000 credit line, but a prinipal balance of $20,635 due to a forced place policy from 2011. Should we force place for the line amount of $20,000 or should we inlcude the $635? Never had this question before and wanted to see what others do.

Thanks.

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Flood Compliance
#2060480 - 01/26/16 02:48 PM Re: Force Placement Amount Question clarkgriswald
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
The lesser of three number is the outstanding principal balance of the loan.
but a principal balance of $20,635 due to a forced place policy from 2011

I guess I am not sure why there is a question? Don't forget to add your new premiums also.
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#2060485 - 01/26/16 02:53 PM Re: Force Placement Amount Question clarkgriswald
clarkgriswald Offline
Member
Joined: Oct 2014
Posts: 51
Thanks Randy, my question stems from the fact that we would be force placing for more than the credit line, but based on your response I see that there isn't a problem in doing so.

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