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Flood Insurance on Bank Owned Foreclosed Property

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Question: 
Is flood insurance required on a property that the bank has foreclosed on and now owns? Notice of Default was filed, but we have been unable to sell the property. The loan balance has been turned over to the credit bureau for collection.
Answer: 

Technically, no. This is no longer a "covered loan" and is not covered by the flood insurance requirements. However, this is bank property and is located in a SFHA. You should prudently protect this property.

First published on BankersOnline.com 8/24/09

First published on 08/24/2009

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