error in real estate closing documentation

[Michael McGuane]

What is the name of your state (only U.S. law)? Colorado

When I closed on my house there was documentation stating the residence was not in a FEMA special flood hazard zone. The original lender then sold the loan to another institution who did their homework and discovered that my residence is indeed in a flood zone. I have been, since then, charged for flood insurance. I am also faced with the real possibility of having to sell at a reduced price due to the flood zone determination. Also, according to FEMA maps my residence has been in the flood zone since at least 2003 and I purchased it in 2007.

Is this enough for me to take some type of legal action against the original lender?

 

[Rexlan]

What is the name of your state (only U.S. law)? Colorado

When I closed on my house there was documentation stating the residence was not in a FEMA special flood hazard zone. The original lender then sold the loan to another institution who did their homework and discovered that my residence is indeed in a flood zone. I have been, since then, charged for flood insurance. I am also faced with the real possibility of having to sell at a reduced price due to the flood zone determination. Also, according to FEMA maps my residence has been in the flood zone since at least 2003 and I purchased it in 2007.

Is this enough for me to take some type of legal action against the original lender?

NO ... at what point to you claim any responsibility? It is your responsibility to do your own homework and it is not the responsibility of others to hold your hand. From what you said, it does not appear that you were misled. Instead, you just didn't check into what you were buying and probably would not know now if it were not for the insurance cost.

If you had an owners title policy (and read it) the flood zone may be noted there.

You're speculating about what-if ... you can't sue for that and win anything.