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#35749 - 10/03/02 09:19 PM Flood Insurance-OREO
LoisLane Offline
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LoisLane
Joined: Oct 2001
Posts: 1,570
Wisteria Lane..
Bank forecloses on residential property in flood zone. Is flood insurance required while the property is owned by the bank?
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#35750 - 10/03/02 11:19 PM Re: Flood Insurance-OREO
Anonymous
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Basically, yes.

Was there pre-existing coverage in effect before foreclosure? Did it terminate at foreclosure?

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#35751 - 10/04/02 01:35 AM Re: Flood Insurance-OREO
Andy_Z Offline
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It wouldn't be a designated loan as we work with daily, but if there is a risk to a bank asset, it should be mitigated. I don't have a cite, but remember what we tell customers, "Flooding for structures in a SFHA is much higher than the risk of fire. Over the life of a 30-year mortgage, a property located in a SFHA has a 26 percent chance of being flooded, compared with a one percent chance of a loss caused by fire."
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#35752 - 10/04/02 12:17 PM Re: Flood Insurance-OREO
Sponge Steve Offline
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Sponge Steve
Joined: Jun 2002
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Midwest
No insurance required. Same as if you had a branch in a flood zone without insurance.
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#35753 - 10/04/02 12:53 PM Re: Flood Insurance-OREO
LoisLane Offline
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LoisLane
Joined: Oct 2001
Posts: 1,570
Wisteria Lane..
Yes, there was flood insurance on the loan before foreclosure.
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