Can't seem to get my head on straight with this issue. Flood guidelines say that you are supposed to force place nsurance "on behalf" of the borrower when the borrower lapses. Yet, lenders are required only to cover the outstanding loan amount.
Is it my understanding that the lender can purchase insurance as the insured without the borrower being a co-insured?
If so, and the purpose of the flood insurance is to help a claimant recover from property damage, how can the lender force place insurance without the borrower as insured and keep the loss proceeds?
I've looked through FEMA's website without luck.
If you keep living straight from the heart, you will know when to stop and to start.