Legal Question in Real Estate Law in Florida

My mortgage is held by Bank of America. They placed a lender-placed flood insurance of $6,171.56 AFTER I paid off the principal balance of my mortgage and AFTER I was told by a BofA representative that I did not have to have flood insurance if my mortgage balance is paid off. Last week I was told that I was "misinformed" by the BofA representative that I still had to have flood insurance in place.
Today, I received a certified letter from BofA that I am delinquent 2 months on my mortgage in the amount of $70.41 and if I do not bring my account current by February 17th that they will start foreclosure proceedings.
BofA applied, what I thought was my principal mortgage balance, my payment 1st to their lender-placed flood insurance, leaving me a principal balance.
My question is this: Can BofA take my payment and apply it to the lender-placed flood insurance (they placed on my account) 1st then show that I am delinquent on my mortgage payment (thus reflecting negatively on my credit scoring) and force me to still take flood insurance although I have paid off my mortgage principal?
Thank you.

Asked on 1/09/12, 11:17 am

David Slater David P. Slater, Esq.

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No, unless this is a past due account.

Answered on 1/09/12, 11:31 am

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