Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm in the process of refinancing my property in Hawaii. New construction home which I closed last year in february 2008. I have a signed disclosure statement saying that the property is not in a FEMA designated flood zone. During the refinance process I come to find out that I am indeed in a flood zone and the bank is requiring insurance. I contacted the developer and they said they are working on changing the flood zone and the bureaucratic process is holding it up. I find this out over a year later and they never disclosed this fact before. We would not have bought a property in a flood zone.
Is there anything I can do? The developer is not being helpful and saying its not their fault even though they signed the disclosure. This sounds illegal to me.
If they say they are in the process of trying to change the flood zone then you should be able to find out when they first filed to do this.
If they filed before the time they had signed the disclosure stating that your property was not in a flood zone then you have all the proof you need to go after them.
Though it is very possible that you were not in a flood zone when you first purchased last year. FEMA has been redoing their flood mapping over the last year or so and most areas are not done yet but some lenders are still using the new zones when determining whether they will require flood insurance or not.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,302,067 times
Reputation: 6471
In many cases, FEMA is relying on local authorities to provide them with flood zone data. In my county, FEMA wants the county to do the updates, but the county has no money to do so, so the old "best guess" prevails. I'd guess that as a seller they should have disclosed that the property is currently in a flood zone, but that they had applied to whatever authority to exclude it, so that you could have made an informed decision.
I have a piece of vacant land which has a creek running through it and part of the property is in the flood zone and yet I'm also in a zone where they have declared there is a low potential for subterranean water. It's one or the other.
I have the elevation certificate that was provided by the mortgage agent signed and dated a week before closing and it's listed as flood zone A0. They sumbitted a conditional letter of map revision (CLOMR) for zone X a few years ago, however that does not constitute a change in the NFIP. They submitted a LOMR 2 weeks prior to closing. The property, according to the bank and updated FEMA maps, is located in zone A0. The zone isn't that bad but I have 3 days left on my refinance rate lock and have the potential to lose the rate which would save me $400 a month, or $4,800 a year. I'm near the shoreline which will likely put the insurance around $1,200 a year as well.
They submitted the LOMR 2 weeks prior to closing but a year + later it has yet to be approved. The flood zone hasn't changed since I've been moved in it was and continues to be in zone A0
I have the elevation certificate that was provided by the developer and it's listed as CLOMR = X. I guess they sumbitted a conditional letter of map revision however that does not constitute a change in the NFIP. The property, according to the bank and updated FEMA maps is located in zone A0. It isn't that bad but I have 3 days left on my refinance rate lock and have the potential to lose the rate which would save me $400 a month, or $4,800 a year. I'm near the shoreline which will likely put the insurance around $1,200 a year as well.
The submitted the LOMR 2 weeks prior to closing but a year + later it has yet to be approved. The flood zone hasn't changed since I've been moved in it was and continues to be in zone A0
Do the loan with the flood insurance than sue the developer for enough money to pay the flood insurance in perpituity and then another 25% for the loss of value of the property.
Don't be nice. Go for blood. That is a shooting offense in the Nevada desert...guy should be drawn and quartered for pulling it in coasal Hawaii.
Do the loan with the flood insurance than sue the developer for enough money to pay the flood insurance in perpituity and then another 25% for the loss of value of the property.
Don't be nice. Go for blood. That is a shooting offense in the Nevada desert...guy should be drawn and quartered for pulling it in coasal Hawaii.
I made an offer to the developer to cover the cost of the insurance and any fees for extending a rate lock and they declined. Hopefully the insurance agent can get enough information before the rate lock expires. I'm shopping for a lawyer now, I like the way you think.
I'm in the process of refinancing my property in Hawaii. New construction home which I closed last year in february 2008. I have a signed disclosure statement saying that the property is not in a FEMA designated flood zone. During the refinance process I come to find out that I am indeed in a flood zone and the bank is requiring insurance. I contacted the developer and they said they are working on changing the flood zone and the bureaucratic process is holding it up. I find this out over a year later and they never disclosed this fact before. We would not have bought a property in a flood zone.
Is there anything I can do? The developer is not being helpful and saying its not their fault even though they signed the disclosure. This sounds illegal to me.
Do you have a survey from your original closing that showed NO flood plain on your property ?
I have property that has a 100 year flood plain crossing the back 1/2 acre and it was clearly marked on my survey when I bought the land in 1999.
Texas here so I don't know what your state requires.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
