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#2258741 - 08/25/21 09:44 PM Bankruptcy and Flood
TeamComply Offline
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We are faced with a flood situation, we haven’t dealt with prior. We have a customer who has filed Chapter 11 bankruptcy, but it hasn’t been accepted by the court yet. The loan matured back in May. Would this bankruptcy filing and the matured loan be considered a MIRE event, and trigger a new flood determination and Notice of Special Flood Hazards? And if so, does notification go to the borrower and/or attorney? The borrower does have adequate flood insurance in place. Wondering what is required flood compliance-wise with this scenario. Thanks.

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Flood Compliance
#2258762 - 08/26/21 01:02 PM Re: Bankruptcy and Flood TeamComply
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 77,294
Galveston, TX
Not sure why filing bankruptcy is a MIRE event. Any communication however has to be done through their attorney,
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#2258763 - 08/26/21 01:16 PM Re: Bankruptcy and Flood TeamComply
TeamComply Offline
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The loan has matured, and it will most likely be re-written. This is a MIRE event, triggering the flood requirements, correct?

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#2258767 - 08/26/21 01:45 PM Re: Bankruptcy and Flood TeamComply
rlcarey Offline
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rlcarey
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Posts: 77,294
Galveston, TX
Not until any of that is approved by the bankruptcy court.
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#2258769 - 08/26/21 01:50 PM Re: Bankruptcy and Flood TeamComply
TeamComply Offline
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Right, but then it is a MIRE event.

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#2258770 - 08/26/21 02:02 PM Re: Bankruptcy and Flood TeamComply
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 77,294
Galveston, TX
I was trying to answer your original question below. Which has now morphed to what happens after discharge.

Would this bankruptcy filing and the matured loan be considered a MIRE event,
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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