new mortgage company forcing FEMA re-evaluation

[BradleyS]

Straight from FEMA FAQ site:

http://www.fema.gov/nfip/ask.htm#9


My bank said I'm in the floodplain and have to buy insurance. I don't believe it. What can I do?

If a lending institution is federally regulated or making federally-backed loans, it must review the NFIP maps to determine if the building is located in a Special Flood Hazard Area. The SFHA is the area that is expected to be inundated by a 1% annual chance flood. If the bank makes such a determination, it must require the borrower to purchase flood insurance. Please note, these determinations are purely in/out and do not involve the vertical elevation of the structure.

If you disagree with the lending institution's determination, you may request that FEMA review the lender's determination. FEMA will then review the information that the lending institution used, and issue a letter that states whether we agree with the determination. Your request must be postmarked no later than 45 days after the lending institution notifies you of the flood insurance requirement and the submittal must be complete. The request must include all of the information and fees listed in the Letter of Determination Review (LODR) information sheet. If your request is postmarked after the 45-day limit has expired, or if we do not receive all of the information within the 45-day limit, we will not be able to review the determination and the flood insurance requirement stands.

FEMA's responses to these requests are called LODRs, and offer two basic dispositions: (1) the lender's determination stands or (2)it is overturned. FEMA's determination is based on the technical data submitted. If the lender's evidence is inconclusive or the request is incomplete FEMA can disagree with the lender's determination. FEMA's response does not amend or revise the NFIP map for your community. It only states that FEMA agrees or disagrees with your lender's determination.

Occasionally a lending institution may require insurance if it determines that a part of your lot is in the SFHA. The NFIP does not insure land. However, even if you submit evidence that your building is out of the floodplain, the bank may still decide to require insurance on your building.

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Maybe this will help.................

 

[jimmler]

Okay. No I don't. I'm still talking with Chase about it.

I thought I might get some good advice here.

I do appreciate the empathy.

My mortgage company did the same thing to me once, a few years back. I sent them a copy of the FEMA FIRM map with my property plotted on it, prepared by a surveyor. In my case, no part of the property was in a flood zone. The mortgage company dropped it after that.

You may want to call a local surveyor licensed in your state, they may be able to provide you with a drawing showing your property, any FEMA flood areas and the improvements to the property. If this drawing shows the improvements outside of any flood areas, the mortgage company may drop it.

If you need a flood elevation cert, the surveyor can also provide this. Ask the surveyor if they have experience with this type of work as not all do this on a regular basis.

A lot of times the mortgage company will input an address, and if it is anywhere near a flood area, they will try to push flood insurance on you. Of course, if you actually are in a flood area, you will be better off with the insurance, but I doubt as others have said that you will get the best price from your mortgage company.

This in no way constitutes legal advice, I am speaking from personal experience, am not a lawyer, and have been in surveying for 15 years.

Let us know how it turns out.

 

[seniorjudge]

...Ask the surveyor if they have experience with this type of work as not all do this on a regular basis....

This indeed is the FIRST question you should ask a prospective surveyor. Then you can get to the how much will it cost and when can you do it routine.

You should ALWAYS get a survey on any land you buy (personal opinion only and I am not a surveyor).

 

[bmorgan]

Thanks for the tips. Good stuff. I made another call to the mortgage company and after the usual multi-transfer routine, got someone who seemed sympathetic. He asked me to send the survey and hinted that might be enough. Don't know where the first two I sent went.

The surveyor said he would gladly do an elevation certificate if needed, but couldn't give an estimate. He said cost varies greatly depending where the nearest "benchmark" is.

I have a question about the FEMA Faq. What exactly does "Please note, these determinations are purely in/out and do not involve the vertical elevation of the structure" mean?

 

[seniorjudge]

...I have a question about the FEMA Faq. What exactly does "Please note, these determinations are purely in/out and do not involve the vertical elevation of the structure" mean?...

I think that is bureaucratese for "We don't care how tall your building is."

 

[bmorgan]

For posterity's sake: The surveying company came out, resurveyed the property and decided it was not in a flood zone.

 

[efflandt]

Have you been to http://msc.fema.gov/webapp/wcs/stor...eView?storeId=10001&catalogId=10001&langId=-1 to see if FEMA shows you in any type of flood zone? You can download a FIRMette (mini map) for free or can order a more specific report.

When I was refinancing with my original mortgage company, they called at the last minute and asked if I had flood insurance. Because my city overlaps two counties, they had gotten a report for the wrong county. I downloaded a FIRMette to prove to myself that I was not in a flood zone, but the closing was delayed a couple of days until they had the correct report. My home was build in 1910 and does not even have (or need) a sump pump in its basement.

 

[bmorgan]

My address was not found on that site, but that will be nice when it works. Fema sent an updated document to my mortgage company, so I'm good to go.

 

[jimmler]

My address was not found on that site, but that will be nice when it works. Fema sent an updated document to my mortgage company, so I'm good to go.

Glad to hear it worked out okay.

jimmler