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socrateaser, Lawyer
Category: Legal
Satisfied Customers: 38892
Experience:  Retired (mostly)
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Charges for Flood Insurance by Bank Of America which is totally

Customer Question

Charges for Flood Insurance by Bank Of America which is totally out of line. Three times regular costs.
Submitted: 4 years ago.
Category: Legal
Expert:  socrateaser replied 4 years ago.

Why did the bank apply flood insurance to your account in the first place?

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Customer: replied 4 years ago.

I had my property surveyed by a professional surveying company. They stated that I was above flood plain. This was done on Sept. 4, 2012

Expert:  socrateaser replied 4 years ago.
Sorry for the delay. I was having my car serviced.

If your position is that you are not required to carry flood insurance, because you are not in a FEMA Special Flood Hazard Area (SFHA), then you would have to sue the lender for breach of contract and for attorney's fees and costs of suit reimbursement. You cannot merely refuse to pay, because the lender can foreclose the lien without any court action, which means that you would have to sue for both breach of contract, slander of title and for an injunction to stay the foreclosure pending the outcome of the lawsuit.

Frankly, waiting is not an option, because the only thing that you will do is increase your potential liability to the lender, if for some reason you cannot prevail in the legal action.

This is not an issue that can be brought to U.S. Housing and Urban Development (HUD) for a violation of RESPA (24 C.F.R. 3500.17). It's simply a dispute over the terms of your loan contract. If you are not liable for flood insurance under the terms of the policy, because your property does not sit within an SFHA zone, then the lender is in breach of contract for assessing charges based on such liability.

You may want to review this FAQ from FEMA to determine whether or not your survey is sufficient to prove that you are not required to obtain flood insurance. Assuming that you are not, then for a competent civil litigation attorney referral, see this link.

Please let me know if I can be of further assistance.

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