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#988645 - 07/07/08 03:47 PM Mistakenly gave 45 days to get hazard - can we FP?
Many Hats Offline
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Joined: May 2008
Posts: 915
Orlando, FL
I learned that we mistakenly sent a borrower that did not have hazard insurance a notice telling them they had 45 days to get a hazrd policy or we would force place.

Since you only have to give 45 for flood and not hazard, can we go ahead an force place now?

The processor is saying that since we told them they had 45 days, we have to give it to them. I don't think that is the case, but wanted to check and make sure I am not missing something.

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Lending Compliance
#988672 - 07/07/08 03:58 PM Re: Mistakenly gave 45 days to get hazard - can we FP? Many Hats
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
There is not regulatory requirement to give them 45 days, but how do you handle the customer service issue? You told them they had 45 days.
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#988735 - 07/07/08 04:15 PM Re: Mistakenly gave 45 days to get hazard - can we FP? David Dickinson
Many Hats Offline
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Joined: May 2008
Posts: 915
Orlando, FL
Well, that's part of the problem.

The processor says it wouldn't be fair to call them and tell them the letter was incorrect, that we need to give them 45 days.

I know it will hurt her pride, but I don't have a problem calling the customer and letting them know we made an error and we will have to force place. They can get a policy of their own within 30 days, then we can cancel our policy.

Otherwise, it will be just our luck lighting will strike the property, it will burn down to the ground and we're toast. Her pride would hurt worse if that happened.....well, maybe.

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#988762 - 07/07/08 04:23 PM Re: Mistakenly gave 45 days to get hazard - can we FP? Many Hats
M Cockrell Offline
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M Cockrell
Joined: Jan 2003
Posts: 1,017
Dallas, TX
You can purchase the insurance to protect your interest without force-placing the cost to your customer. Then cancel your policy once the client has obtained their own or, if they don't obtain it, then force-place at the end of the 45 days (going forward, not back-dating), as stated in your letter.

You keep your word and you're only out a minimal cost.
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#988917 - 07/07/08 05:50 PM Re: Mistakenly gave 45 days to get hazard - can we FP? M Cockrell
waldensouth Offline
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waldensouth
Joined: Nov 2001
Posts: 7,973
FINALLY ABOVE the gnat line
There are also some states that require a 45 day notice. I don't remember FL's without looking it up - if that is covered by statute or not.
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