Flood-MH not taken

Should the bank complete the flood determination for a loan taking land as collateral, but the land has a Mobile home on it which was not taken as collateral. I have been reading the requirements, and I think I am confused now.

NFIP - Mandatory Purchase of Flood Insurance Guidelines - 9/2007:

Page 5 f. Lender Responsibilities

"The statutory requirements apply when improved real estate (that is, a building) or manufactured (mobile) home is taken as security for a loan."

If the Bank does not have the mobile home as security, flood requirement do not apply.

Hope this helps.

Ski is correct.

One thing to remember is sometimes when we're told the building was not taken as collateral; what they really mean is that it wasn't included in the valuation. For the building not to have flood insurance requirement, it has to be excluded on the mortgage.

That's only if the building is part of the real property. If the MH is not part of the real property and they did not take a security interest in the title to the MH then none of the flood requirements kick in.

I agree. In this case I assumed that the mobile home located on the land met the requirements for flood insurance (e.g. anchored to the ground, etc.)

What if you are dealing with an abandoned mobile home that indicates "of no value" in the loan file, but the Deed of Trust clearly states that the property covered by this Deed of Trust specifically includes all fixtures, now or hereafter located on the Real Property, and this deed shall serve as a fixture filing for the state of ___ law. Although the MH title is not included in the file.

Would this require a flood determination?

The MH is clearly run down, although with a roof and walls and a secure foundation. It is not attached to any utilities such as electricity.

We have one of these. There was no value on the mobile home, but we took as collateral and it is in flood zone. We pulled the tax appraisal and it gave a value of $23,000.00. The insurance company said you cannot get RCV on a mobile home. So do we have to get the loan amount or do we get flood on the value of the mobile home?

You get it on whichever is the lower number (at a minimum)

If it is of no value as a MH, that doesn't mean it has no value as a storage shed, hay barn, playhouse, etc. As any of these it could be insured, yes?

Why is it still there?

If a flood came through and the owner was told "make a claim and you can get $5k easy" do you think they'd say it had no value?

Do I need to amend my post...I in no way meant that "no value" would be one of the "minimum" options.. Andy's post made me think that it may be construed in that manner, which was not my intent.

I meant the appraised value or the loan amount, whichever was less.