Can They Do This?

[cyndi2u]

What is the name of your state? INDIANA


I closed on my home loan, and 3 months after the closing of the loan the Finance company tells me, that they had an overlook and said I had to put flood insurance on my homeowners insurance, I declined and another gentleman called me and said "I messed up and I was suppose to have the flood insurance in the closing" and I refused to pay for it so the gentleman above "Said I will lose my job" and the gentleman paid the flood insurance last year and put the flood insurance in my name, and now a year after all that they are still coming after me about flood insurance and they recenlty just added it to mortgage**************...Is that legal A. To add insurance in my name w/ out my permission B. To come back and say I need flood insurance after the closing. And by the way accoridng to all the drafts I have my house is not in a flood zone, my extra lot sits on 2 feet of a flood zone**************..also in the state of INDIANA is it mandatory to have flood insurance? Thank you for your time.

Sincerely
Cyndi

[Some Random Guy]

Read your closing documents carefully.

You will probably find a FLOOD INSURNACE NOTIFICATION document that says something along the lines of

...Therefore we hereby understand and agree that is, any time prior to, or after the closing of our loan, the lender is able to determine that the above property is located in a Special Flood Hazard Area and flood insurance is required, we hereby authorize the lender to secure flood insurance of the required amount and type to be placed upon said property....

Your signature will be found at the bottom of the document.

This was taken from a recent Indiana closing document.

Provided you agreed to a similar provision at closing, they will have every right to ensure that they do not lose their collateral on the loan. I would be quite surprised if your lender let you get a mortgage without such a provision.

Your problem is that the extra lot is part of the flood zone - and that lot is part of the mortgaged property. If you cannot convince the lender that you do not need flood insurance, consider refinancing so that only your house and main lot are on the mortgage and your extra lot is paid off.