ESCROW AND FORCE PLACING INSURANCE

We have a loan that is escrowed, a bad loan, we have filed suit and because the escrow balance is negative I am being told to force place the insurance. In this case, since we have filed suit, do I have to send the 45 day notice letters and not charge the loan until the 46th day?

I know of no exemption to the notification requirement before charging them for force placed flood insurance.

We have encountered this situation a few times and always send the notice to the customer and then wait to charge them for the insurance.

You really need to be talking to your attorney regarding what you can and cannot do in the middle of foreclosure proceedings.

Thank you for your responses!