ANSWER: We are sorry to hear of your problems. We cannot give you a direct reply without seeing the exact terms on which the mortgage holder relies. Contractual terms vary so much. Some are enforceable, others are not.
The question is intriguing. Why do you have a new mortgage holder? It is possible this is a change in the ownership of the debt. If so, you will have to look at the terms of the mortgage to see on what basis the debt can be assigned and what power a new mortgage holder has to vary the terms of the original agreement unilaterally. Then you need to look at exactly what flood insurance you have been instructed to buy. Exactly what is being covered? Does the mortgage entitle you to buy a substitute that offers comparable coverage? Have you got quotes for alternative coverage? Does your home stand on a flood plain? Is federal cover available - this is usually the cheapest option if your home is at risk of flooding?
When you have the answers to these questions, take the quotes and your copies of your original documents to an attorney and get advice. This will cost you dollars but it is the only way to get precise advice based on your actual circumstances. |
