We have a loan that is coming up for Maturity and the property is in a flood zone which we have forced placed due to borrower not keeping up his policy. My question is can we renew (change in terms) the loan to extend maturity with a forced placed policy or do we have to have the customer purchase the policy on their own in order to renew?

Thank you

You can - the question is do you want to? They are in default on your loan agreement; I would not be cutting them much slack.