Flood Insurance

[LanceTruckHound]

What is the name of your state? Arkansas

Thanks in advance for the advice.

I recently built a home through a very good contractor. At the closing I found out I have to have flood insurance until I can get a LOMA (Letter of Map Amendment) letter from FEMA to remove me from the flood plain. The house is built above the flood plain but the lowest adjacent grade is below the flood plain. So:

Flood plain is 265ft
Floor of the house is at 268ft
Adjacent grade is at 262ft

Now, none of my neighbors had any problem getting a mortgage without flood insurance. Here I am at 6 months and still no answer. I and my banker believes the "stigma" attached with having to have flood insurance will deminish the value of the home.

So my questions are these:

1. Shouldn't the survey guy made us aware of this?
2. Do I have a case to sue for the diminished value of the home (which i value at the price of flood insurance per year x 30 years, the length of my mortgage). Because of this negliance and omission my property value is effected.

Thanks

Lance

[HomeGuru]

[QUOTE]Originally posted by LanceTruckHound
[B]What is the name of your state? Arkansas

Thanks in advance for the advice.

I recently built a home through a very good contractor. At the closing I found out I have to have flood insurance until I can get a LOMA (Letter of Map Amendment) letter from FEMA to remove me from the flood plain. The house is built above the flood plain but the lowest adjacent grade is below the flood plain. So:

Flood plain is 265ft
Floor of the house is at 268ft
Adjacent grade is at 262ft

Now, none of my neighbors had any problem getting a mortgage without flood insurance. Here I am at 6 months and still no answer. I and my banker believes the "stigma" attached with having to have flood insurance will deminish the value of the home.

So my questions are these:

1. Shouldn't the survey guy made us aware of this?

**A: yes and no. It would have depended upon what type of survey was ordered.
***********


2. Do I have a case to sue for the diminished value of the home (which i value at the price of flood insurance per year x 30 years, the length of my mortgage). Because of this negliance and omission my property value is effected.

Thanks

Lance

**A: who are you planning on suing? The surveyor, the contractor, FEMA etc?

[LanceTruckHound]

That's a good question. I hope I don't have to sue anyone. I'd like to get this resolved without having to sue and without having to have flood insurance.

Somewhere in this chain is a responsible party (I think). I hired a contractor to take care of these issues for me. She has done an outstanding job (in my opinion). I just don't know who's responsible. I think I paid to have this risk removed.

I would think this would be the responsibility of the surveryor since he has the sign off authority in a compliance role with FEMA. Since he did the survey and has approval authority then I think he should be responsible. What do you think?

[HomeGuru]

Originally posted by LanceTruckHound
That's a good question. I hope I don't have to sue anyone. I'd like to get this resolved without having to sue and without having to have flood insurance.

Somewhere in this chain is a responsible party (I think). I hired a contractor to take care of these issues for me. She has done an outstanding job (in my opinion). I just don't know who's responsible. I think I paid to have this risk removed.

I would think this would be the responsibility of the surveryor since he has the sign off authority in a compliance role with FEMA. Since he did the survey and has approval authority then I think he should be responsible. What do you think?

**A: contact the surveyor and ask them why they did not disclose the flood area.
Contact the contractor and ask the same question. Then post back.

[LanceTruckHound]

I think most of the parties involved are on Spring Break with kids right now. I'll ask the question next week and respond.

Thanks for you help.

[HomeGuru]

[QUOTE]Originally posted by LanceTruckHound
[B]I think most of the parties involved are on Spring Break with kids right now. I'll ask the question next week and respond.

Thanks for you help.

**A: I don't care what kind of break they may or may not be on.
You contact them right away. That's the problem, you just keep waiting and waiting for something to happen and nothing does. Heck, you already wasted 6 months. And furthermore, if you found out about the flood issue at closing, you could have refused to close and walked.

[LanceTruckHound]

You're right. I have wasted 6 months.

I didn't "walk" from the closing because everyone assured me this would work out. What a joke. I'll do what you say. I'll contact them today.

Thanks for driving me on.

Lance

[HomeGuru]

Keep on truckin.

[LanceTruckHound]

HG...

Here's the latest. I spoke with the surveyor today. He said that in fact the entire subdivision is in the flood plain. I asked about the LOMA letter. He didn't know much about it. He did say that our house floor was built a full 2ft above the flood plain as required by regulation.

I tried to get a hold of the banker to get the name of the guys from the city to see what they required. He was out so I'll try again tomorrow. I also went to see the developer, he also was out of town until tomorrow.

At any rate I'm pressing. I also got the names of a couple of attorneys in my area that specialize in construction type work. My thought is to run the traps gathering as much info as I can through Friday then turn it over to the Lawyer.

Does this sound reasonable?

Thanks. I really appreciate your help.

Lance

[HomeGuru]

Originally posted by LanceTruckHound
HG...

Here's the latest. I spoke with the surveyor today. He said that in fact the entire subdivision is in the flood plain. I asked about the LOMA letter. He didn't know much about it. He did say that our house floor was built a full 2ft above the flood plain as required by regulation.

I tried to get a hold of the banker to get the name of the guys from the city to see what they required. He was out so I'll try again tomorrow. I also went to see the developer, he also was out of town until tomorrow.

At any rate I'm pressing. I also got the names of a couple of attorneys in my area that specialize in construction type work. My thought is to run the traps gathering as much info as I can through Friday then turn it over to the Lawyer.

Does this sound reasonable?

Thanks. I really appreciate your help.

Lance

**A: yes.

[LanceTruckHound]

In the words of Joe Dirt, "Things are happening for me now!"

I met with the contractor this morning. She was "shocked and amazed" that this work still remains. At any rate this is what I told her needs to be done by THIS week:

1. A meeting will be conducted at the site with the following members: Contractor, banker, surveyor, and public works guy.
2. Two questions will be answered - 1. By the public works guy, what needs to be done to get him to sign the paper. 2. Between the bank and the contractor, who's gonna pay for the work. I'm not. I've paid once for the landscaping and sprinkler system. It's their job to do the job right.

I also found out the bank was doing the wrong paperwork. They are doing a LOMA to amend the map. Instead they should be doing a LOMR-F because of the fill placed on my lot. I required the bank to give me a point of contact to complete the paperwork (they'll do the paperwork) and I will review their work prior to it being sent in. So basically I want to check their work since I've went through the trouble of doing the research.

I'm going to meet with the lawyer this week also. I won't engage him unless this thing comes to a halt over beckering about who will pay. But I will go ahead and give the history and make sure that if he is required that ramp-up time will be minimal.

Any other advice?

Thanks so much for you help and motivation. You've had a major part in reigniting the project.

Lancer

[HomeGuru]

[QUOTE]Originally posted by LanceTruckHound
[B]In the words of Joe Dirt, "Things are happening for me now!"

I met with the contractor this morning. She was "shocked and amazed" that this work still remains. At any rate this is what I told her needs to be done by THIS week:

1. A meeting will be conducted at the site with the following members: Contractor, banker, surveyor, and public works guy.
2. Two questions will be answered - 1. By the public works guy, what needs to be done to get him to sign the paper. 2. Between the bank and the contractor, who's gonna pay for the work. I'm not. I've paid once for the landscaping and sprinkler system. It's their job to do the job right.

I also found out the bank was doing the wrong paperwork. They are doing a LOMA to amend the map. Instead they should be doing a LOMR-F because of the fill placed on my lot. I required the bank to give me a point of contact to complete the paperwork (they'll do the paperwork) and I will review their work prior to it being sent in. So basically I want to check their work since I've went through the trouble of doing the research.

I'm going to meet with the lawyer this week also. I won't engage him unless this thing comes to a halt over beckering about who will pay. But I will go ahead and give the history and make sure that if he is required that ramp-up time will be minimal.

Any other advice?

Thanks so much for you help and motivation. You've had a major part in reigniting the project.

Lancer

**A: looks like you got things pretty much under control for now.