always_learning
Recycles dryer sheets
- Joined
- Feb 2, 2017
- Messages
- 267
Does anyone know if a mortgage lender (in the US) can require flood insurance at a date after the initial loan date?
For instance, no flood insurance is required at the time of closing and then, say, three years down the line, FEMA designates said property as being in a flood zone. Can the mortgage company then come and say 'hey, you must get this insurance now" or are they bound by the initial loan terms?
(I'm not debating on whether the owners should voluntarily buy it or not, but am just curious as to the mortgage company's rights and limitations.)
Thanks in advance.
For instance, no flood insurance is required at the time of closing and then, say, three years down the line, FEMA designates said property as being in a flood zone. Can the mortgage company then come and say 'hey, you must get this insurance now" or are they bound by the initial loan terms?
(I'm not debating on whether the owners should voluntarily buy it or not, but am just curious as to the mortgage company's rights and limitations.)
Thanks in advance.