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#2212354 - 04/29/19 07:08 PM We have 1st & 2nd lien on SFHA property
needHELP! Offline
Junior Member
Joined: Jan 2013
Posts: 44
We have a 1st lien on a property that is located in an SFHA. If we take a 2nd lien on the same property, and the flood insurance is already for the max amount of insurance available through the NFIP, do we need to be listed as both 1st & 2nd mortgagee on the flood policy, or would it be sufficient to be listed as 1st mortgagee on the policy with no one listed as 2nd mortgagee, since we have both the 1st and 2nd lien?

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Flood Compliance
#2214193 - 05/22/19 05:42 PM Re: We have 1st & 2nd lien on SFHA property needHELP!
Nicole A Offline
Junior Member
Joined: Feb 2016
Posts: 41
Is your first lien equal to or in excess of the max amount of insurance available through the NFIP?

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#2214203 - 05/22/19 06:27 PM Re: We have 1st & 2nd lien on SFHA property needHELP!
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,951
Galveston, TX
Not sure it really makes a difference as long as you are listed as a mortgagee.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2214623 - 05/30/19 05:16 PM Re: We have 1st & 2nd lien on SFHA property needHELP!
J Van Horn Offline
Junior Member
Joined: Sep 2012
Posts: 25
Coppell, Texas
My two cents: Plan for the future. If the borrower refi's the 1st, you will be removed when the new lender is added. Safer to be listed twice (now), than to have to account for process-triggers to get the bank added back to the policy (then).

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#2214624 - 05/30/19 05:21 PM Re: We have 1st & 2nd lien on SFHA property needHELP!
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,964
Bloomington, IN
If that happened, and the second was not also being paid off, adding us to the flood policy as a subordinate lien holder would be a stipulation for us subordinating the debt.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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