What polite does it do to wages for a flood cirtification at the time of a refinace??
WE DID A REFIANCE ABOUT 13 MONTHS AGO. MY FIRST DOES NOT REQUIRE FLOOD INSURANCE, NOW MY SECOND HAS SAID THAT IT IS A REQUIREMENT. I HAVE THE PAPERWORK FROM BOTH THE FIRST AND SECOND THAT SHOWS THAT THERE WAS A FLOOD CIRTIFICATION DONE AT THE TIME. AND EVERTHING WAS OK FOR THE LIFE OF THE LOAN. ALSO ACCORDING TO THE FEMA WEB SITE AND ALSO MY INSURANCE COMPANY WE ARE NOT LOCATED IN A FLOOD ZONE. ZONE X IS WHERE THE PROPERTY IS LOCATED. I DO NOT HAVE A ELEVATION CIRTIFICATION ON THE PROPERTY, IF I WAS TO GET ONE IT WOULD COST ME ABOUT $700.00. NOBODY IN OUR AREA HAS FLOOD INSURANCE, AND THERE ARE OTHER PROPERTIES THAT SET LOWER THAN OURS. EVEN THOUGH MY INSURANCE COMPANY SAID I WAS NOT IN A FLOOD ZONE. THEY SAID I COULD PURCHASE A PREFERED FLOOD ZONE COVERAGE POLICY. THIS WOULD BE ABOUT $350.00 DOLLARS. I DON'T UNDERSTAND THE WHOLE CONCEPT. I HAVE ALREADY CONTACTED MY FIRST ABOUT ALSO DOING MY SECOND. I'M AT A LOSS AT THIS POINT, I JUST WANTED TO SEE IF ANYBODY HAD ANY IDEAS. THANK YOU.
Answers:
Well, flood zones CHANGE from year to year.
The ONLY method to contest the true need for flood insurance is near an elevation certificate. $700 seem EXTREMELY high for one, here contained by Houston I was quoted $250, two years ago. But even if it is, you'll be ahead of the team game in smaller quantity than two years if you get it done.
It doesn't surprise me that not a soul in your nouns has flood insurance - apparently it's single been needed for relations who have financed, or refinanced, contained by the past year.
It is possible that the second mortgagee is WRONG. They could own the wrong house number, or the wrong STREET number, you CAN ask them to see a copy of the zone certificate they are using. After adjectives, they CHARGED you for it in the closing.
Besides that, adjectives you can really do is just pay cheque off that mortgage as brisk as possible, so you don't have adjectives the hassles of have it forced on you, or having to m¨ºl¨¦e them every year.
I would fax or email the findings from the FEMA network site and a letter from your insurance company to your 2nd mortgage lender to show the proof. I know that this is a step that you might hold already taken, but figured I would mention within case you did not. I would also ask that lender how they come about remapping the flood zone nouns. Your last resort might be to attain a consultation with a definite estate attorney. It would be cheaper than being forced to payment the flood insurance every year.
Your second lender came within 13 months after you took out the loan and said you need Flood coverage? Was that a requirement surrounded by the loan documents?
They can require any type of insurance they want. However, their requirements should be in the loan documents, not a unmarked requirement they decided to put surrounded by 13 months later. Look at your resourceful loan documents and see what it says underneath insurance requirements. If it's not in here, I don't know how they can add that subsequently.
When I lived in a flood zone, it be in the loan that we would hold a flood policy in effect, along beside coverage for fire, etc. We knew we have to have it when we took out the loan.
Bless your heart...you must live surrounded by South Louisiana. Ever since Katrina, FEMA has granted to rezone everything where I live and the lenders are freaking out. I live contained by an X, and I each of the two times I financed the house, it wasn't an issue. However, this does not nouns kosher 13 months into the loan. Tell you what- go to RESPA.com. You will own contact #'s and samples of complaint forms that may steer you surrounded by the right direction. You may also want to contact the Attorney General in your state. Good luck. I hope this help!
i think its time to move that 2nd mtg to another lender. zone "X" is definately NOT a flood zone and in consequence should not be required to have that policy.
If you are in an "X" zone you are not within a SFHA (Special Flood Hazard Area) considered to be at minimal risk for a flood, and the mortgage company cannot require you to have flood insurance, time.
Mortgage companies are required by the federal government to require you to take Flood insurance if you are in a SFHA.
What normally happens, though, is that the lower smooth processors do not really understand the difference between a SFHA and a non-SFHA, and that non SFHA Homeowners are NOT required to transport the coverage.
You need to progress up the ladder at the mortgage company until you win someone with the fluency and experience to really help you. Some mortgage companies enjoy a separate department that handles Flood insurance - see if yours does. They'll be much more potential to know the rules.
Before I retired I often call on behalf of clients and spoke to a lot of uninformed associates, but I never had to stir higher than a supervisor past I spoke to someone who understood how things really worked - that you should not be required to purchase Flood insurance. You should not be required to submit an elevation qualification - their own records show you within a non-SFHA.
I wish you have an insurance agent willing to shift this extra mile for you. I always did it base on principle. No one screws over my clients on MY keep watch on. ;)
So, call again. If for some plea your Mortgage company will not let you find around the elevation certificate requirement (which would formulate me crazy), ask your insurance agent or call around to some surveyors. I have a company I referred all my clients to that would do the certificate for $50. $700 is the going rate for a full survey - something you do NOT need.
All that said, remember that 40% of floods evolve in non-SFHA areas. Having a flood insurance policy is not a discouraging thing - but you should not be required to hold one.