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I know �� thank you for all the helpful info. I'll speak to the lawyer tomorrow get a flood insurance quote and hopefully make a final decision. There's really not much out there that isn't awful in my price range (>300k) Back to the drawing board I suppose!
I don't know if you meant to say this, but you don't get a flood insurance quote from your lawyer. I called a bunch of insurance companies and I think they told me there if the home was in a flood zone and even quoted me a few prices.
Anyway, I started a thread not too long ago asking about a home in a flood zone and most everyone here said two simple words: "STAY AWAY!"
Not all mortgages require flood insurance. Only Fannie/Freddie backed loans do. Private Mortgages it is up to the bank.
If they took a mortgage out a long time ago when banks kept mortgages on their books and did not sell it and loan is small perhaps bank did not make them get it. If loan amount is less than land value maybe they dont care.
But a Fannie/Freddie large confirming loan taken out today in a flood zone you will be required to have flood insurance.
All you have to do is call a flood insurance broker you can get names off floodsmart and call one local to house and they can tell your for sure
We passed on a house in an AE flood zone. Our quote was $2,500 - $3,000 per year on a three bedroom, 1.5 bath house. And yes, we would have been required to carry insurance, even though we were told that house has never been flooded, either. That's a lot of money, and it's not likely the payment will ever go away. If anything, it will probably increase.
In my opinion it's never worth buying a house in a flood zone. I've heard too many horror stories. Even though a house may not have flooded recently, that doesn't mean it never will. A guy I used to work with had his house flood in one of the big storms and he was displaced for months while everything was repaired. It was at least the second time he had been through it and he would come to work every day almost in tears because of all the stress.
If this house is in a flood zone, walk away from the deal. There are so many amazing houses in my town that I would never even consider living in due to the added cost of flood insurance.
There's actually not a lot of great homes in my area in my price range lol. I've been looking. I meant I was going to talk to my lawyer about the flood quotes (sorry about that). I've called two agents today to get a flood quote and neither have gotten back go me and the clock is going on my attorney review. My mortgage lender sent me a letter saying the house is not in a flood zone. Super confused about this as the fema maps and the buyer realtor said we were. No one can give me a final straight answer so I had the lawyer add as a contingency if the house is in a flood plain or flood insurance is required than we have the option to walk away. Is this smart?From what I read insurance is only required by law when it is a bank mortgage - is this right? My loan is through a private mortgage broker with a solid reputation so as far as I know it is up to them if they choose to require it or not.
There's actually not a lot of great homes in my area in my price range lol. I've been looking. I meant I was going to talk to my lawyer about the flood quotes (sorry about that). I've called two agents today to get a flood quote and neither have gotten back go me and the clock is going on my attorney review. My mortgage lender sent me a letter saying the house is not in a flood zone. Super confused about this as the fema maps and the buyer realtor said we were. No one can give me a final straight answer so I had the lawyer add as a contingency if the house is in a flood plain or flood insurance is required than we have the option to walk away. Is this smart?From what I read insurance is only required by law when it is a bank mortgage - is this right? My loan is through a private mortgage broker with a solid reputation so as far as I know it is up to them if they choose to require it or not.
Does the current owner have flood insurance? Believe it or not you dont have to own home to buy a flood policy on it. Just tell another broker you want to buy a flood insurance policy on house starting today. Pretend you own it, he will send it to underwriter and give you a policy and at that point dont pay the prem of course to start it. If you buy house use the broker so you dont waste your time.
You need to find out as soon as you can. And frankly, once you get past lawyer's review, the house is yours to give up. You can use your inspection to ask for outrageous things or specify that the house be raised ten feet and then not be able to come to terms.
And frankly, once you get past lawyer's review, the house is yours to give up. You can use your inspection to ask for outrageous things or specify that the house be raised ten feet and then not be able to come to terms.
This is poor advice.
You can't just "ask for outrageous things" and then back out of the deal with no repercussions when the seller refuses those outrageous things. Most contracts spell out what you are buying as well as the scope of the inspections. Outrageous things are usually not within the scope of inspections & inspection remedies.
To find out EXACTLY what your contract says about your inspections and your right to back out of the contract, you should review your contract with your real estate attorney.
Hello - quick update. I had the lawyer pull flood information and records. It is in a flood zone officially and flood insurance is required. At this point i just feel jerked around and i'm over it so i pulled my offer. The lawyer sent over an official cancellation of everything. We were in attorney review until tomorrow so she stated there will be no repercussions or financial penalties.
According to my realtor the buyer had "2 other offers" so i dont think he will be that bent out of shape.
In other news, I found a house in my price range in Teaneck - but i dont know much about that area. I'm not far from there at all but i've heard it can have rundown and unsafe areas.
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