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After looking at the flood maps, it's only about 2 square blocks that are in zone AE. It's not even all the homes in those 2 square blocks. What bad luck. We called a few agents and they all believe that all the homes in the neighborhood are not in a high risk flood zone. I wish that was the truth. =(
Again, goes to show they don't know. Fine to express an opinion, but as a 'professional' in the industry, when you make outright statements they are assumed to be fact. They should be making conditional statements like, "I don't think those homes would be in a flood plain, but I don't know that for a fact."
Is there a lake, river, wetland, creek bed in the area??
I know your post is about the real estate process with the flood insurance, but we live above a flood zone, and at least once a year, we must use alternate routes because the area is flooded. I've actually seen people in little motor boats going along in the water around the houses! The houses are clearly flooding even though they're built higher than other houses, and the property is totally under water.
I was looking for property in our area and came across a home and property for sale and was astounded at its low price. It's listed as "River view!" like it's some kind of positive thing. Um, no. I'd think carefully before buying anything that requires flood insurance. Homes that flood often have mold issues. Homes that flood cause all kind of property damage. It's a nuisance at best and a financial and health hazard at its worst.
Trying to sell a house in a flood zone isn't easy, esp if the house has flooded and there's even one dot of mold anywhere. And living in the house can create anxiety any time it rains or snows a lot. I certainly don't mean to be a downer, but as a first-time home buyer, I'd love to help you avoid trouble. I wish someone had told me about checking the water for specific issues (not just general water quality) when buying a house with a well...
We got a copy of their policy on Thursday. We found out on Wednesday that we needed flood insurance from the bank.
Are banks always suppose to provide a good faith estimate ? What information do banks gather to make a GFE ? Is the flood insurance something that would of came up ?
No, the flood issue would typically not come at the time of the good faith estimate (now known as a Loan Estimate).
The house in Lindenwood, Queens. There are two agents involved. The sellers decided to give us the $500. This is the norm in NYC.
We got a copy of the sellers flood policy and they knew they were in a mandatory flood zone. They're paying a lot less because they've had the policy for 11 years. We can be grandfathered in, but we'll get the price they're paying which is $1200 for 1 year. It goes up to almost $3K after that.
You can go to FEMA's website and put in the address to see if you're in a flood zone and what zone you're in.
I'd just like to know who should be taking the blame on this. I'm sure the bank doesn't just drop this on you right before setting a closing date.
How about the issue with the interest rate ?
they are giving you $500 to cover for the lack of disclosure that the home is in a flood plain? "This is the norm is NYC"...sounds like you continue to take the agent's word as gold. I have never heard of a "norm" for such a negotiation and HIGHLY doubt there is any kind of norm for this in your area or any area.
they are giving you $500 to cover for the lack of disclosure that the home is in a flood plain? . . . I have never heard of a "norm" for such a negotiation and HIGHLY doubt there is any kind of norm for this in your area or any area.
Having bought and sold homes in New York City and the surrounding suburbs I can assure you that it is indeed the norm to not provide a disclosure statement and pay the buyer a $500 penalty instead.
To quote Nolo.com:
Quote:
If you fail to timely complete and deliver the disclosure statement, you will owe the buyer a $500 credit toward the purchase price at the closing. (N.Y. Real Prop. Law §465(1)).
Many New York sellers' attorneys interpret this relatively low penalty as an opportunity for their clients to opt out of the PCDA by paying the $500 in lieu of providing the form, and see this as avoiding the risk of potential liability for misstatements on the form.
they are giving you $500 to cover for the lack of disclosure that the home is in a flood plain? "This is the norm is NYC"...sounds like you continue to take the agent's word as gold. I have never heard of a "norm" for such a negotiation and HIGHLY doubt there is any kind of norm for this in your area or any area.
It's quite common in New York STATE to give buyers $500 at closing because they don't fill out the disclosure form. State law mandates you either honestly fill out the disclosure form or give the buyer $500 at closing. Many folks just give the $500 so they don't have to deal with the hassle of the form. Unless you're the original owner, you really have ZERO idea on how to answer most questions. For example, the house I live in was built in 1942, I really have ZERO idea if it has EVER flooded....no idea what kind of electrical or plumbing there is. Don't know about right of ways or egresses or any of that stuff....get a survey if you want to know.
It's quite common in New York STATE to give buyers $500 at closing because they don't fill out the disclosure form. State law mandates you either honestly fill out the disclosure form or give the buyer $500 at closing. Many folks just give the $500 so they don't have to deal with the hassle of the form. Unless you're the original owner, you really have ZERO idea on how to answer most questions. For example, the house I live in was built in 1942, I really have ZERO idea if it has EVER flooded....no idea what kind of electrical or plumbing there is. Don't know about right of ways or egresses or any of that stuff....get a survey if you want to know.
wow. seems like a pretty easy out for sellers. What if you did know your house had flooded since you owned it. Could you just opt to pay the $500 and not disclose AND be protected?
i was under the impression that the op meant for this specific issue (flood).
wow. seems like a pretty easy out for sellers. What if you did know your house had flooded since you owned it. Could you just opt to pay the $500 and not disclose AND be protected?
i was under the impression that the op meant for this specific issue (flood).
Yes, there is no mandatory disclosure in NY. It's up to the buyer to do due diligence. It's honestly very hard for me to believe that this OP did not know this house MIGHT be in a flood zone. I look at a map of Lindenwood and I think "Sandy damage".
Too many people in this world don't want to help themselves, just rely on others. I deal with it every single day at work, where people refuse to pick up the phone and make a call that might help them out or do anything to move the process forward. Then they are left twisting in the wind. This buyer wanted to rely on the real estate agent, who wants to MAKE A SALE IN A FLOOD ZONE. Now look where he is. Bet he won't make that mistake twice.
where our daughter is in lindenwood was unscathed by sandy . they had zero flooding or even water issues . the co-op they are in was not required to have flood insurance
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