House in the Special Flood Hazard Zone (real estate, insurance) - New Jersey (NJ) - City-Data Forum

kshum88 · 10-30-2008, 05:02 PM

Can I back out from a deal after I found out the house is situated in a special flood hazard zone as determined by the mortgage company? The seller has never disclosed this information to me, and we have already passed the attorney review, home inspection, and mortgage has been approval.

Flood insurance is very expensive, and if I have known, the decision to purchase would have been definitely different.

Any chance of backing out the contract at this stage? I am really worry about not able to get back the $10,000 deposit back.

Any of you with experience sharing will be greatly appreciated.

monack · 10-30-2008, 05:37 PM

Have you spoken to your attorney?

clevedark · 10-30-2008, 05:42 PM

I'm sorry you're going through this. Take a deep breath and talk to your lawyer and realtor.

Good luck and I hope it works out.

86Sebring · 10-30-2008, 06:23 PM

Wouldn't the inspector had to know and inform you about that? That is definitely a reason for backing out. Good luck

taurus430 · 10-30-2008, 06:33 PM

I would think this is a major issue that was not disclosed. The realtors should have known this. Talk to your lawyer. I don't think the inspector has anything to do with this. There 's a flood map that the realtors have access to that shows flood zones.

kshum88 · 10-31-2008, 12:47 PM

My attorney said that there is a real possibility that the seller will take the deposit, as there is no language in the contract to prevent them in doing so. I also talk to the mortgage company and they said that without flood insurance, I can not close on the house, but that does not mean the seller can't take the deposit either.

Who is responsible for the "Elevation Certificate"? If the seller doesn't have it, then does that fall under the buyer's responsibility? I just feel that it is not fair that everything falls on the buyer.

Irish Eyes · 10-31-2008, 01:05 PM

Do you have the seller's disclosure? When we bought our house that was in the disclosure. If they said no when they really are, that should help you get out of it. Otherwise - what's the point of the disclosure?

sdweisman · 10-31-2008, 04:07 PM

can you get your mortgage company to say you're no longer approved for the mortgage. i think then you can back out without losing anything. but i would think your lawyer would know what to do.

i'm in a flood zone. there isn't a lot of wiggle room. fema sets the rates so it's going to be the same no matter which insurance company you go to. mine is an extra 1600.00 a year.

good luck with whatever you end up doing

kshum88 · 10-31-2008, 05:20 PM

Quote:

Originally Posted by Irish Eyes

Do you have the seller's disclosure? When we bought our house that was in the disclosure. If they said no when they really are, that should help you get out of it. Otherwise - what's the point of the disclosure?

No there is no seller's disclosure. My real estate agent asked for it but it has never been provided. My attorney said that the fact that this information has not been disclosed by the Seller will not hold up in court if I back out from the deal.

kshum88 · 10-31-2008, 05:23 PM

Quote:

Originally Posted by sdweisman

can you get your mortgage company to say you're no longer approved for the mortgage. i think then you can back out without losing anything. but i would think your lawyer would know what to do.

i'm in a flood zone. there isn't a lot of wiggle room. fema sets the rates so it's going to be the same no matter which insurance company you go to. mine is an extra 1600.00 a year.

good luck with whatever you end up doing

I talked to my mortgage officer and no, it can't be done either. The loan has been approved and commitment letter was issued. There is no way for the bank to back away and deny the load now, as the mortgage officer told me that the bank could get suit if they do that.