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Old 05-15-2008, 07:40 PM
 
Location: OK
2,522 posts, read 4,227,173 times
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I don't know when you bought your house and if an appraisal was done on it, but appraisers report on the FEMA status in the appraisal report.
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Old 05-15-2008, 07:41 PM
 
Location: Nine Mile Falls/Spokane, WA
864 posts, read 2,999,650 times
Reputation: 503
Quote:
Originally Posted by palmcoasting View Post
I'm a little confused...wouldn't this have been the responsibility of the insurance company to tell you what your property's designation was? It is here.
I was thinking the same thing...it's not a title issue, it's an insurance issue and they're the ones who would or should have verified whether or not flood insurance was required. Did you ask your insurance agent about this situation?
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Old 05-15-2008, 07:54 PM
 
Location: Salem, OR
11,012 posts, read 18,935,465 times
Reputation: 6973
Quote:
Originally Posted by songinthewind7 View Post
The title company will not allow us to close on the house until this flood plain issue is resolved. I'm not sure why they're making an issue of it either. Our house is 3 inches into the flood plain but the fema maps show it being borderline so the issue was not brought up when we bought the house but now that it's being sold, the buyers attourney said that a survey had to be done in order for the house to sell. We had the survey done and found we are 3 inches into the flood plain and my question to the title company and to the attourney that owns it was, why is it an issue now but it wasn't an issue when we bought the house. His answer was that the title company is not responsible for telling us about problems and that's why we should have hired an attourney.
The attourney was the one that used the word 'secret' and he was being sarcastic.
Why does the title company care whether or not the house is in a flood plain?? I also don't get why you had to redo a survey to show whether or not it was in a flood plain. It has nothing to do with the title of the home. Being in a flood plain is more for the home owner, their insurance carrier, and the lender.

I don't understand Texas at all! Where is THL (Texas Horse Lady) when you need her?
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Old 05-15-2008, 08:12 PM
 
Location: Capitan, NM
7,088 posts, read 12,039,786 times
Reputation: 3377
Quote:
Originally Posted by palmcoasting View Post
I'm a little confused...wouldn't this have been the responsibility of the insurance company to tell you what your property's designation was? It is here.
I'm not sure. They gave us house insurance without questioning whether or not it was in the flood plain.
I thought it was the title companys fault because they had this information and apparently lied about it to the realtor and the bank and of course to us.
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Old 05-15-2008, 08:15 PM
 
Location: Capitan, NM
7,088 posts, read 12,039,786 times
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Quote:
Originally Posted by Schousse View Post
I don't know when you bought your house and if an appraisal was done on it, but appraisers report on the FEMA status in the appraisal report.
An appraisal was done about a year before we bought and a few months after we bought it.
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Old 05-15-2008, 08:18 PM
 
Location: Capitan, NM
7,088 posts, read 12,039,786 times
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Quote:
Originally Posted by WendyK View Post
I was thinking the same thing...it's not a title issue, it's an insurance issue and they're the ones who would or should have verified whether or not flood insurance was required. Did you ask your insurance agent about this situation?
We didnt bring it up because we were told it was not an issue. The title company also told the bank that loaned us the money that the floodplain was not an issue. So of course we didn't have to ask. We've never payed flood insurance.
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Old 05-15-2008, 08:22 PM
 
Location: Capitan, NM
7,088 posts, read 12,039,786 times
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Quote:
Originally Posted by Silverfall View Post
Why does the title company care whether or not the house is in a flood plain?? I also don't get why you had to redo a survey to show whether or not it was in a flood plain. It has nothing to do with the title of the home. Being in a flood plain is more for the home owner, their insurance carrier, and the lender.

I don't understand Texas at all! Where is THL (Texas Horse Lady) when you need her?
That's one of the questions I'm trying to get answered. We had to do a survey because the fema map showed where we may be borderline so in order to close on our house, we had to get an elevation survey done to show whether or not we're in the floodplain or not. They're bickering now over 3 inches and the buyers don't care about 3 inches.
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Old 05-15-2008, 08:32 PM
 
Location: Central Texas
16,511 posts, read 23,015,072 times
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Okay, what little I know about this issue. (But I'm inspired when I have more than two breaths' worth of time to do so, to go research it further.)

There is a place to indicate whether or not the property is in a flood plain on the MLS, but "unknown" is one of the choices.

This is actually a lender issue, not a title company issue, as far as I know. The lender will require flood insurance if the property is in a flood plain (just as they require hazard insurance) - there's a charge on the HUD for a flood certificate (determination of whether or not the property is in a flood zone).

I'm somewhat puzzled about the survey - was a survey not done at the time of purchase by the OP? If not, why not? Was this a cash purchase so no lender was involved? Is the title company or the current buyer's lender saying that the survey that the OP has is not good enough and a new one needed to be done?

Lots of details missing that might cast a brighter light on what the heck's going on here.

Crossposted, you say that the title company told the bank that flood insurance was not an issue. You're probably referring to the flood certificate I mention above, which is done not by the title company but by a third party.
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Old 05-15-2008, 09:20 PM
 
Location: Capitan, NM
7,088 posts, read 12,039,786 times
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So it's the banks responsibility and fault for letting this go through? They're blaming the title company for not letting them know about the floodplain.
The bank (lender) says the reason they lent us money was because the title company said everything was okay, as in we are not in the floodplain. Obviously the bank did not double check it but took the title companys word and lent us the money. We pay regular insurance but not flood insurance. The bank lender seems confused about the fact that we've been paying on a loan for a little over 3 years and none of this was ever brought up.
A survey was not done at the time we purchased it because the issue was not brought up. What I've been saying is that we bought a place that fema has on the floodplain but it hasn't been brought up until we decided to sell the house and it was brought up by the attourney that is representing the buyers and whose brother owns the title company. They've been hiding something possibly because he was trying to protect the man we bought the house from. (The seller was a good ol local boy and we were outsiders)
The people buying from us now are paying cash and want it regardless of this mess but the attourney wanted us to do another survey (the one that costs 10,000) to get us out of the floodplain. We just had 1 survey and they want us to do another. Seems no one knows what is going on with this. People in Fredericksburg hem haw around too much and seem a little backwards in some ways.
Hope I answered some of the questions you had. I see you're in central texas too.



Quote:
Originally Posted by TexasHorseLady View Post
Okay, what little I know about this issue. (But I'm inspired when I have more than two breaths' worth of time to do so, to go research it further.)

There is a place to indicate whether or not the property is in a flood plain on the MLS, but "unknown" is one of the choices.

This is actually a lender issue, not a title company issue, as far as I know. The lender will require flood insurance if the property is in a flood plain (just as they require hazard insurance) - there's a charge on the HUD for a flood certificate (determination of whether or not the property is in a flood zone).

I'm somewhat puzzled about the survey - was a survey not done at the time of purchase by the OP? If not, why not? Was this a cash purchase so no lender was involved? Is the title company or the current buyer's lender saying that the survey that the OP has is not good enough and a new one needed to be done?

Lots of details missing that might cast a brighter light on what the heck's going on here.

Crossposted, you say that the title company told the bank that flood insurance was not an issue. You're probably referring to the flood certificate I mention above, which is done not by the title company but by a third party.
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Old 05-15-2008, 09:41 PM
 
Location: Central Texas
16,511 posts, read 23,015,072 times
Reputation: 12812
One quick question. FEMA does change where the flood plain is occasionally (due to such things as building that increases the impervious cover upstream, for example). Is it possible this happened then?

I ask because the only way the title company would tell the lender anything about the flood plain, as far as I know, is by providing them a copy of the flood certification, which would be done by a third party, not the title company. The title company doesn't determine whether a property is in the flood plain or whether flood insurance is needed. It's the lender's responsibility to require the flood certificate, from what I know and everything I can find with google so far.

And what the heck kind of survey costs $10,000? What kind of property are we talking about? I've had a listing where a pretty complicated survey was required (small town, the properties were originally part of a family farm that the parents gave kids pieces of to buy houses back when it was country, and it ended up that a ten foot wide strip ran across the back of a neighbor's property THROUGH their garage) and that only cost about $800. When we had our little ranch of 55 acres surveyed (granted, some 12 years ago), it only cost a little over that to survey the entire thing.

I thought we were talking about a house - are we talking commercial property or something here?
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