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We recently identified a loan where the lender neglected to identify an additional home on the property and require flood insurance on it. Now we are working on remedying this. The flood insurance agency is stating we will have a 30 day wait until the policy is in effect (which I have researched and see both sides). Is this ok or are we going to have to force place for the time we don’t have insurance?
If you force-place is there a 30 day wait period? See the article below.
https://www.consumercomplianceoutlook.org/2015/first-quarter/compliance-update/
If you will also have a 30 day wait period then I see no benefit, but if you will not have a wait period then you could force-place in order to have adequate flood coverage.
The borrowers agreed to get the insurance and got right on it. But I’m struggling with the fact that it appears the only way to not have a (additional) lapse is to force place during the waiting period when the borrowers did take the correct steps and got insurance. The force place insurance they would have to pay for is 3 times as much as their policy, granted it will only be for a short period of time.
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