Follow Up on Flood Insurance Q & A

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Question:

Relative to the question: <a href="http://www.bankersonline.com/lending/guru2009/gurus_ldng082409e.html">Flood Insurance on Bank Owned Foreclosed Property</a>. what if the bank has not foreclosed, but the property is in nonaccrual/charge off status on the books, security has not been released, the customer is still living in the home, and there are no plans to remove him?

Answer:

In my opinion, this would still be a designated loan; therefore, requiring flood insurance.

First published on BankersOnline.com 11/23/09