<p>Does anyone have the experience of finding out that a home you own is in a flood plain? We’ve owned it 4 years. The previous owner did not know it was in a flood plain. We have been trying to sell for 2 years and finally have an offer and the buyer’s lender comes up with this news. Advice is welcome and needed. Do we inform our lender? I don’t know if this is a dealbreaker for our buyer.</p>
<p>If the buyers lender knows that it is in a flood plain, they will most often require that the buyer purchase flood insurance. That is between the buyer and his lender and may effect his ability to get a loan. Was it just put into the flood plain? FEMA has been doing some redrawing of flood plains maps since the Midwest flooding of 2008, but I don’t believe they have gotten to everything (I know that have not finished Iowa yet). </p>
<p>If you want to see a flood plain map for your specific address try this website [FEMA</a> Map Service Center -](<a href=“Redirect To Portal”>Redirect To Portal)
Type in your address, hit search and then view. These maps can be a little frustratingto use on-line, but they are accurate. If you want to order a copy of the map, they are very low cost and usually come in about 4-7 days.</p>
<p>If you just bought the house four years ago I am surprised that your lender did not catch this then and require you to have flood insurance. If your buyer needs to buy flood insurance, his best bet is through FEMA, if your community participates in the program, but his lender should be able to work on this with him.</p>
<p>Maybe Pima can weigh in on how much of deal breaker this could be, I don’t really know the ins and outs of that end of the deal. One thing that is important is what flood plain is it in? 10 year, 500 year. It makes a difference to the risk and cost of insurance. I suspect that if it hasn’t been a problem you are probably not in the highest risk group.</p>
<p>Your county may also be able to give you more specifics. Sometimes whether or not flood insurance is required by the lender depends on the elevation of the house. When I bought my house 2 years ago, I was told by the seller’s agent that the house was not in a flood zone. But my lender looked at the FEMA maps and said it was in the flood zone and I needed flood insurance, so I purchased flood insurance. A year went by and when it was time to renew the insurance, my lender advised me that I did not need flood insurance. Flood maps show my property is in the flood zone. BUT apparently my house is at an elevation that raises it above the flood plain. So while my property is in the flood zone, my house is above it so no flood insurance is required. (but I buy it since I get a cheaper rate and feel like I’d rather be safe than sorry - if the street in front my house is in the flood zone, I don’t trust that the waters wouldn’t rise and damage the house). </p>
<p>When I was looking at real estate a couple years ago, I feel in love with another house down the street and was told that it too required flood insurance, but I learned that I could have an elevation survey done and that might show the house was above the flood plain. </p>
<p>You might find you have a similar situation, that while your house is in the flood plain, it may be elevated enough so that flood insurance is not required and if the new owner wants to purchase flood insurance it may not be a deal breaker. You can also go to the National Flood Insurance website and find out how much flood insurance is for your property.</p>
<p>The FEMA map being used is from 1983. Interestingly enough the maps are being redrawn in our area and when we looked at the maps on our state’s website it looked fine. But those are preliminary and not official yet. Apparently it is a 100 year flood plain. So not so good. The house was built 14 or 15 years ago. The previous owner was an insurance agent and said it wasn’t in a flood plain. You’re right, it is strange our lender didn’t caatch it either. Our realtor said the many mortgages are being delayed right now because Congress has not renewed the flood insurance program so no new policies are being written until our legislators quit playing their games. Thanks for your help!</p>
<p>We are now pursuing an elevation survey. When we moved to Indiana 18 years ago and fell in love with a house that was in a 100 year flood plain. They had been flooded 2 years prior so we thought what are the chances and made an offer. The next night there were torrential downpours and 6 inches water in the family room. We pulled the offer and bought another house. Every once in awhile I’d drive by the first house. Six years later it had been flooded 2 more times and then they tore it down! I would never have knowingly bought a house in a flood zone after that near miss. However, I am praying our buyer doesn’t run. The house is our last reminder of a job my husband lost that resulted in a year and a half of unemployment. It will be nice to get rid of it.</p>
<p>No need to order an entire FEMA FIRM. You can use the following tool to create what’s called a “FIRMette”… just shows the portion of the map that has your house in it.</p>
<p>[FEMA</a> Map Service Center - FIRMettes](<a href=“Redirect To Portal”>Redirect To Portal)</p>
<p>You don’t have to pay for that.</p>
<p>If you have any questions about what zone your home is in, let me know. I just got done with the flood hazard mitigation analysis for UTMB-Galveston. Floods ‘n’ earthquakes… that’s m’job.</p>
<p>Being in a 100 year flood plain is not a big deal. It’s kind of amazing that a lender wouldn’t pick up on this. Requirements vary but you may have to buy flood insurance - if a loan is government guaranteed, then yes, but maybe sometimes otherwise no if the lender is holding on to it. I think there’s still a Congressional hold-up about re-authorizing the program, but that has to work itself out because, well, it has to.</p>
<p>This kind of flood insurance is not a big deal financially and isn’t a deal breaker for selling a home. </p>
<p>And note that flood insurance is about floods, not wind storms. One of the biggest problems people have in hurricane areas is that they need both flood and windstorm coverage and the latter has become a real issue.</p>