Posted By: Tryin-2-Comply
Multiple loans - multiple buildings - 12/05/12 05:38 PM
Here is our situation: We have one loan secured by real estate and 4 structures in a SFHA. Then, we have an equipment loan.
Loan # 1. Property loan with 4 structures: Balance $58,560.45. (value of structures is $147,836).
Loan # 2. Loan secured by equipment that could be stored in some of the structures on loan #1: $39,518.79 (equipment valued at $50,000 - however, it is believed that some of the equipment is too large to be stored in any of the structures).
The loans are not cross-collateralized as loan #1 is their primary residence.
We are in the middle of determining the amount of insurance required for force placement. The customer refuses to purchase flood insurance.
Would we force place flood insurance on the equipment, although we are unsure if and when the equipment may be stored in the buildings - does it matter since the equipment is NOT collateral on loan no. 1?
BTW - the customer is uncoorperative.
Thanks!!!
Loan # 1. Property loan with 4 structures: Balance $58,560.45. (value of structures is $147,836).
Loan # 2. Loan secured by equipment that could be stored in some of the structures on loan #1: $39,518.79 (equipment valued at $50,000 - however, it is believed that some of the equipment is too large to be stored in any of the structures).
The loans are not cross-collateralized as loan #1 is their primary residence.
We are in the middle of determining the amount of insurance required for force placement. The customer refuses to purchase flood insurance.
Would we force place flood insurance on the equipment, although we are unsure if and when the equipment may be stored in the buildings - does it matter since the equipment is NOT collateral on loan no. 1?
BTW - the customer is uncoorperative.
Thanks!!!