flood insurance

[sandman035]

We live in Ohio and recently tried to refinance our house
with the same mortgage company we used five years ago when we bought the house. The mortgage company is now telling us we need flood insurance. Looking thru our paperwork, I found
a survey we signed showing part of our property is in a flood plain, but our house which is on a cliff isn't. What can we do? Who's to blame?

 

[HomeGuru]

For what?

 

[sandman035]

Someone let our house loan slip thru without requiring flood insurance. If we knew we were in a flood plain we would have had the previous owners pay the $600 needed to have a special survey done & the paperwork to get us out of the flood plain. Or we wouldn't have bought the house.

 

[HomeGuru]

You are to blame.

 

[sandman035]

Why?

 

[HomeGuru]

You were the Buyer correct?
Did you bother to find out exactly what you are buying ie. reviewing the title report, the real estate apprasal, the survey etc.
Was it not you that went to closing and signed all the documents presented to you. One of the documents that you signed was the survey that indicated that part of the property was in a flood plain. Hello...that was your red flag to ask further quuestions.
One good question directed to the surveyor, your Realtor, your insurance agent, closing agent etc., would have been, "how come the survey shows a flood plain but the home is on a cliff?"

 

[sandman035]

Was it not the mortgage company that hired the people that
told them we didn't need flood insurance? If the mortgage company that has a bigger stake in our house than we do ,didn't get the red flag--you think we should have? Our house is on a cliff but the propert goes down hill to a creek.

 

[HomeGuru]

You can argue all you want but that does not change the flood insurance requirement until you prove to the bank that such insurance is not needed.
You were lucky for 5 years. If there was a disaster and you lost your home due to this disaster and that replacement would have been covered under the flood inurance policy, guess what? You would be homeless or living on the cliff in a pup tent.

[Edited by HomeGuru on 07-29-2001 at 12:58 AM]

 

[sandman035]

shouldn't this have been disclosed at closing.Our house sits on one of the highest points in the city. The whole town would be under water before us! Most of the town is not in a flood zone.We knew that part of our property was in a flood zone but the survey showed that our house wasn't. What kinds of questions do you think we should have asked?

 

[HomeGuru]

You are correct, the facts should have been disclosed prior to closing.
But, I don't care if your home was on Mt. Everest: if the lender required flood insurance, it would be up to you to prove that flood insurance is not required.

Did you have a real estate agent or attorney help you with the transaction.
If no, then you understand why you have this problem.
If yes, then you know who to blame.

Keep us posted. In the meantime, I'll keep building the ark.

 

[sandman035]

Yes, we did have a real estate agent. The mortgage company is now telling us that the company they used was in err when they let the loan go thru without flood insurance. They said the person had been let go. The mortgage company then said they would refinance our house at a lower rate but couldn't give us any equity in our house & then offered us a home equity loan at a higher rate. Are we being taken? It sure feels like it.
thanks

 

[HomeGuru]

Git a second opinion from another mortgage broker.