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.