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#2249052 - 02/10/21 09:25 PM 45 day force place notice - foreclosure
CloudShape Offline
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CloudShape
Joined: Oct 2002
Posts: 525
Edge of Sanity
And it isn't even a full moon. . . .

Loan on property in SFHA. The borrower is deceased and the bank is foreclosing. I have read the FDIC rule and do not see an exception for the 45 day force place notice if the loan is in foreclosure. There is an exception for escrowing for flood if the property is in foreclosure, but I don't see one for sending the 45 day force place notice.

We are pretty sure the borrower isn't going to be running out to get flood insurance, and I am guessing the PR of the estate isn't going to either since it is in foreclosure, but do we still have to send the PR the 45 day notice to force place the flood insurance?

And just because nothing can be easy, the PR has already transferred the title to the property. We can't send the notice to the new owner because they are not the borrower. Or we don't have to send the notice to the new owner because the rule says it has to be sent to the borrower. The estate no longer owns the property. Does that make any difference on whether or not we have to send the 45 day force place notice?
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Flood Compliance
#2249057 - 02/10/21 10:22 PM Re: 45 day force place notice - foreclosure CloudShape
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
Really a question for your foreclosure attorney - how can the estate transfer the property before the loan is paid?
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#2249157 - 02/12/21 01:52 PM Re: 45 day force place notice - foreclosure rlcarey
CloudShape Offline
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CloudShape
Joined: Oct 2002
Posts: 525
Edge of Sanity
TOD deed. And our state apparently allows it. We still have the lien on the property.
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#2249218 - 02/14/21 05:15 PM Re: 45 day force place notice - foreclosure CloudShape
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
You send the notice to the estate, they are now the borrower until you foreclose or the heirs that the property was deeded to assume your loan or obtain refinancing.

(g) Force placement of flood insurance— (1) Notice and purchase of coverage. If a member bank, or a servicer acting on behalf of the bank, determines at any time during the term of a designated loan, that the building or mobile home and any personal property securing the designated loan is not covered by flood insurance or is covered by flood insurance in an amount less than the amount required under paragraph (c) of this section, then the member bank or its servicer shall notify the borrower that the borrower should obtain flood insurance, at the borrower's expense, in an amount at least equal to the amount required under paragraph (c) of this section, for the remaining term of the loan.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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