home purchase in flood zone

[aleksb]

What is the name of your state? ohio
i purchased a home from HUD 2 and a half years ago. I am now trying to sell it, but when I got a contract it fell apart because my property is in a flood zone. I was not told this at the time of purchase by any of the parties (HUD, the bank, title agency). The bank did not require me to purchase flood insurance as well.
was i to be made aware of this prior to my purchase, and if so who is the responsible party?

 

[kat1963]

Sounds like FEMA revised the map of your area so that now the home is in a flood zone. It might have been during your initial purchase.

KAT

 

[Grandma's house]

Or the lender missed it. It happens.

 

[aleksb]

I already checked w/ my county. They told me the property has been in a flood zone since 1983.
I know someone missed it, but I would like to know if legally I can do something about it. i would not have bought the house if I knew about the flood zone.

 

[Ozark_Sophist]

I already checked w/ my county. They told me the property has been in a flood zone since 1983.
I know someone missed it, but I would like to know if legally I can do something about it. i would not have bought the house if I knew about the flood zone.

You are the responsible party; you bought the house. Flood maps are available and you should have examined them. For my properties, the flood map was are included with the appraisals--showing my properties were not in the flood plain.

 

[Grandma's house]

You act as though there is something WRONG with being in a flood zone. There is without proper coverage. Very large portions of Fl. are in a flood zone. The Capes, CA. Heck even parts of OH. (don't know how, but IS) No one is out anything but the lender for missing this should the home get destroyed. You too of course. The lender missing this is not anything that you can "leach" onto. Thank your lucky stars. Do you have ANY idea how much flood insurance costs? Why do you think they aren't rebuilding very large portions of New Orleans? It isn't because of lack of funds , government error or mismanagement of funds as everyone thinks. Why should we? Why should we rebuild New Orleans until they fix their levy's FIRST. No one can afford the ins. Nor does ANY lender want to loan there. It is YOU that bought it, and should have checked things out. Like buying a very high performance car. You should have check the insurance first. I drive a Lexus in the summer. It IS the fastest 4 door sedan EVER built. I didn't know that. That is my fault. I'm stuck with it till the lease expires. I just thought it looked "sporty". Can I sue Lexus for not telling me that my insurance is almost as high as the car payment?

 

[aleksb]

Thanks to all of you.
It sounds like I have made a rookie investors mistake.
What confuses me is that the reason I lost the contract when trying to sell the home I did not tell the buyer about the flood zone. Of course I did not know about it until the title agency found out 7 days before closing. I am now told that legally I have to include this information on the contract.
I am not upset about the flood insurance, I am upset because this was my first investment rehub and now I have an opsticle of a flood zone that allready cost me a buyer.
I guess I was just looking for someone to blame.

 

[Grandma's house]

Thanks to all of you.
It sounds like I have made a rookie investors mistake.
What confuses me is that the reason I lost the contract when trying to sell the home I did not tell the buyer about the flood zone. Of course I did not know about it until the title agency found out 7 days before closing. I am now told that legally I have to include this information on the contract.

yes...of course you do

I am not upset about the flood insurance, I am upset because this was my first investment rehub and now I have an opsticle of a flood zone that allready cost me a buyer.
I guess I was just looking for someone to blame.

You lost the buyer because it was in a flood zone? There is more!

 

[seniorjudge]

As the OSophist said, it's up to you to do some investigation.

The appraiser may not have known it was in a flood plain.

I do not think that is part of an appraiser's job.

I would also wonder if it is not obvious that it is in a flood plain?

 

[Grandma's house]

Some are and some really aren't. Parts of OHIO for instance. My own home became one.
A really bad storm year...and fema DID have to come out to several of our homes. Reason being is we are on flat land HOWEVER the hill way above us changed the terrain in taking out all the trees and building there. OMG are my neighbors all upset and many trustee meetings, zoning and all...many are suing...not me though. I do not like drama. I DID however make a HUGE mistake when cashing the check from FEMA for the repairs they paid for.

This WAS the death warrant to now BEING a flood zone.

No...I cannot pay it back and reverse it either....Believe me I tried. You know I did. I never begged anyone to TAKE MY MONEY/OR THEIR MONEY BACK... so hard before. They would NOT.