Posted on: 13th Jan, 2009 07:03 am
I bought a house. Flood insurance coverage in the amount of the loan was a requirement and was complied with. The loan was sold and the new mortgage company has a requirement that the amount of flood insurance must equal the amount of homeowners insuance coverage. Can the terms and conditions of a loan agreement be changed without the borrower's knowledge or consent? What appears to be the case is that as a lender I have no right to choose.
You definately have a case here. If you have the documents from your original mortgage, then provide a copy to the new bank. If they do not comply, then call a lawyer.