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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 111449
Experience:  Attorney At Law handling education matters.
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I filled almost 4 years ago. The mortgage turned it over to

Customer Question

I filled for bankruptcy almost 4 years ago. The mortgage turned it over to a debt collector mortgage company, even through it was never in the bankruptcy. I am trying to refinance a VA loan for lower interest rate. I was not paying flood insurance previously. Since trying to refinance the mortgage is now forcing me to pay flood insurance. I had an Elevation certificate d one that shows a corner of the back deck in the flood area. I've never received a master copy of the flood insurance policy and have asked for it twice. When I refinance in 2005 I was not paying flood insurance. The debt mortgage company had not asked for flood insurance until I started looking into refinancing a loan. 1. Can they do this, make me pay flood insurance and not give me a copy of the policy? 2. They told the new lender that the flood insurance is not transferable to a new lender and is requesting the policy be paid in full. Can they do that? 3. Will I receive any money back from the bebt lender on the policy? Help? Thank you. I'm a senior citizen on a set income.
Submitted: 4 months ago.
Category: Bankruptcy Law
Expert:  Law Educator, Esq. replied 4 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Even if a small part of your land is in a flood zone, they can make you pay for flood insurance, but you can also get out of paying by filing with FEMA for a Letter of Map Amendment (LOMA), which you can do online: https://hazards.fema.gov/femaportal/onlinelomc/signin
You would need to get a new survey done to submit with the letter of map change to show that the small area of the deck should not be in the flood zone (Just had to do this on my property). Without the LOMA, you will have to pay the flood policy. It will cost you roughly about $500-$1000 to get the LOMA if you have a local survey company do the whole thing such as http://www.pointtopointsurvey.com/fema-elevation-certification-letters-by-point-to-point-land-surveyors/
or
https://www.flatironsinc.com/services/other.php
While I know that sounds like a lot of money to pay, if you add up what you will pay in flood insurance it pays for itself in a few years.
As far as the policy not being transferrable to a new lender, this depends on the wording of the policy, which they MUST give you a copy of so you can read it. If the policy says you cannot transfer it then you cannot do so, but if it does not say that then they cannot refuse to transfer the policy. If the policy was put on by the mortgage company and you cancel the policy, again it depends on wording of that policy as to whether or not you would get a pro rated refund, but most companies who are reputable will provide some refund.

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