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#1626763 - 11/09/11 09:14 PM Charged Off Loan and Flood Insurance
upstateNY Offline
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Posts: 933
New York State
If we charge off a loan completely, are we required to forceplace flood insurance on the property?

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Flood Compliance
#1626846 - 11/09/11 10:42 PM Re: Charged Off Loan and Flood Insurance upstateNY
Cowboys Fan Offline
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Posts: 4,615
SC
Differing opinions on this one. One camp says that a charge off is just moving the loan from one section of the balance sheet to the other and until the debt is forgiven or moves to REO you need to track and force place flood. Others say that once it's charged off it's not required. You should probably contact your regulator and get a written opinion from them to be on the safe side.
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#1626879 - 11/10/11 12:16 AM Re: Charged Off Loan and Flood Insurance Cowboys Fan
Andy_Z Offline
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What is the long term plan? Will you forgive the debt as uncollectable, or foreclose on the property in which case you want it protected? I would believe the answer is dependant on that.
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#1627065 - 11/10/11 03:09 PM Re: Charged Off Loan and Flood Insurance Andy_Z
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Wouldn't it depend on if you took the property into ORE, in which case it is no longer securing a loan? Like you imply, I would still want insurance for S&S reasons, but it wouldn't be required under flood technically.

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