[StBernard] flood insurance...

[Westley Annis]

Hi all...
 
     My flood insurance was escrowed out. When I first picked out an
insurance comapny, my neighbor (who worked for Powell) and I talked and she
told me, I'd never miss that $6000 in 30 years if I never made a claim, and
by God she was right, I never missed it. However, I do have to say, that I
had it set up in advance to have flood insurance every year (the whole two I
paid for). I always thought it was an option- they buyer's choice, and yes
my building check came in my mortgage company's name...food for thought for
next year...
 
Wendy

________________________________

Sam,
Why would any mortgage company want to escrow the flood insurance in an area

that is a "no-flood" zone (as if that has any meaning anymore anyway)?  The
only reason they agree to handle the paperwork for the homeowner's isurance
is for their own protection of getting the property repaired if it is
damaged to ensure they can get a return on their initial investment.  The
companies view the "no flood" areas declared by the federal government to be

a fairly safe bet and do not require the insurance because of low-risk and
they don't want the headaches associated with the process I would guess.
If you carried flood insurance in a "no flood" zone, the flood check came
payable to you alone-not the mortgage company.  They would not even know if
you had flood insurance.  I wonder if Standard Mortgage- the one you
mentioned- would be willing to take on the paperwork now and escrow the
money after all of this.  Maybe they can see the light now.  They would be
foolish not to.  It would be far better to do more paperwork than
foreclosing on a property that they can't sell for enough to cover the
remaining mortgage.

As for the Baker Bill...
I do support the Baker Bill.  We believed the federal government and the
existing levee data when deciding whether to buy flood insurance or not. 
Therefore, I do think that there should be assistance available beyond what
FEMA has provided already to help those in need.
KM