Is there any prohibition in the state of Texas to adding a force placed hazard insurance premium to the outstanding balance of the Note and re-amortizing? Concern is the requirement that a home equity loan must be repaid in substantially equal payments. Flood force placed insurance is added, so I assume (always gets me in trouble) that hazard force placement is the same? We do not escrow for taxes or insurance, so adding to the Note is or only option, and we just had our first occurrence.

How you collect is a matter of your contract. I would be seeking legal counsel advice, but this event is exempt from that requirement.

Texas Administrative Code

TITLE 7 BANKING AND SECURITIES
PART 8 JOINT FINANCIAL REGULATORY AGENCIES
CHAPTER 153 HOME EQUITY LENDING
RULE §153.11 Repayment Schedule: Section 50(a)(6)(L)(i)

Unless an equity loan is a home equity line of credit under Section 50(t), the loan must be scheduled to be repaid in substantially equal successive periodic installments, not more often than every 14 days and not less often than monthly, beginning no later than two months from the date the extension of credit is made, each of which equals or exceeds the amount of accrued interest as of the date of the scheduled installment.

(4) Section 50(a)(6)(L)(i) does not preclude a lender's recovery of payments as necessary for other amounts such as taxes, adverse liens, insurance premiums, collection costs, and similar items.