We have an existing Ag loan with 16 parcels of vacant land as collateral. The borrower is selling one parcel and replacing it with another, but no other changes. The note will remain "as is", and we will add a mortgage with the new parcel which is perfected by language in the existing note. We will of course be ordering a new flood determination for the new parcel, but is it necessary to order new determinations for the other existing properties since I don't believe this would constitute a MEIR event? Just want to confirm I haven't missed anything. Thank you :-)
raitchjay
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Joined: Oct 2009
Posts: 9,105
OK
Totally agree that you should verify that it's vacant through the appraisal or evaluation. But if it truly is vacant, i don't know why you'd pull a flood determination, or refer to it as "vacant" if it isn't.
raitchjay
Power Poster
Joined: Oct 2009
Posts: 9,105
OK
I think i see what you're saying now.....you still aren't required to pull a flood determination on a (truly) vacant piece of land, so whether you are going to pull a determination is going to be based on your procedures.