<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by andrew:
We entered into a contract to purchase a home, and all the information presented to us by the seller, realtor, appraiser, and mortgage agent indicated that the property was not in a flood zone. A recent inspection of the property during an unusally heavy rainstorm caused me to obtain an engineering report that indicated that portions of the property are within the 100 year flood plain.I am presently under contract to sell my present house (closing to take place in 7 days!!!), I do not want this new house now that I have found out that there is a possibility that it may flood. What can I do? Is there any way I can keep my present house? My family would have no place to go, and I can't afford another extended home search.<HR></BLOCKQUOTE>
You have raised 2 main issues:
1) on the house that you have a contract to purchase- you may have an out due to the flood zone problem that you were not aware of. All the industry professional individuals you mentioned and the Seller should have been aware of the flood zone.
The Seller's lender may have required flood insurance. The Realtor and the appraiser should have researched this and made a discovery. The mortgage lender did not investigate fully. A survey would have also discovered the flood zone.
2) As far as the sale of your home, you may not have a right to cancel if you are 7 days away from closing and all the contingencies have been met.
You should talk to your Realtor and see a real estate attorney right away. Delay closing on the sale of your home until you have time to consult with your attorney.
