Countrywide Mortgage Forcing Purchase of Flood Insurance Dallas Texas

When refinancing our Home the Mortgage company Countrywide requested we purchase Flood Insurance. We had never had too have it before as we had lived in this home in Indiana for 6 years before refinancing the first time. Our Neighhbor who has lived here for close to 20 Years and lives about 50 Ft. from our home could not believe it, as he has never had to have it. He is also the County Building Inspector. He brought me a Flood Plain map home and I contested the Insurance to no avail.

2 years later after we almost lost our home due in part to the extra burden of paying Flood Insurance, we have refinanced again in October 2006 for a fixed rate and just our luck, Countrywide has bought our loan again, but they are not forcing Flood Insurance this time around. The Broker we used for the 2nd refinancing pulled the Flood Plain map and proved we are not in a Flood Plain and thus we were not required to take it out. This Flood Hazard Determination is dated April 6,1998 and expires on October 31,2008. It clearly states no Flood Insurance is required. I have a copy and had mailed it to Countrywide as well as the Insurance agent to no avail.

Today I received a letter that Ohio Casualty Group has turned this over to a collection agency for $110.08 that they say we owe from the previous Mortgage on Flood Insurance balance. I was hoping for a refund on what we were forced to pay and certainly did not expect being sued for what we should not have had to pay in the first place. This created a financial hardship for our family.

Do you have any suggestions on how I may proceed with this? Should I contact an Attorney to resolve this? It seems that in cases such as this Insurance companies as well as Mortgage companies have us backed against a wall and are clearly taking advantage of Families like ours working every day and trying to live the American dream. Does anyone have any suggestions on how to proceed? I would be very grateful for any help anyone may be able to give me.

Thank You,

Donna
Houston, Texas
U.S.A.