Posted on: 12th Dec, 2008 12:13 pm
My husband purchased a home on a FHA loan with Charter Mortgage in 1996. At closing they did not provide a copy of the flood certificate he paid for nor did anyone inform him of his home being in the 100 year flood plain for the area. Charter then sold the mortgage to CountryWide. Fast forward to 2008 and Hurricane Ike (no flooding just disaster SBA repair loan) we discover that not only is the home in a 100 year flood plain but when FEMA remapped they stopped the study before reaching our subdivision and threw us into zone AE.
My issue is not the need for Flood insurance or the AE rezoning as I have secured a policy and a survey showing were are 3 feet above base flood so that battle is being fought to get us back into the X zone separately.
My question is did Charter and subsequently Countrywide and the title company not have a responsibility to inform him of the flood zone when he was working through the closing process so he could have changed his mind about the purchase or secured flood insurance at that time? Bottom line they left an uninformed buyer unprotected for more that 10 years and that smacks of non disclosure to me.
I would appreciate your opinions.
Jacki
My issue is not the need for Flood insurance or the AE rezoning as I have secured a policy and a survey showing were are 3 feet above base flood so that battle is being fought to get us back into the X zone separately.
My question is did Charter and subsequently Countrywide and the title company not have a responsibility to inform him of the flood zone when he was working through the closing process so he could have changed his mind about the purchase or secured flood insurance at that time? Bottom line they left an uninformed buyer unprotected for more that 10 years and that smacks of non disclosure to me.
I would appreciate your opinions.
Jacki
Hi neon,
I agree with you. Normally the lenders ask the borrowers to get a flood insurance if the property is located in the flood zone. In my opinion Charter Mortgage should have informed your husband about it. Its quite surprising as to why they haven't asked your husband to get a flood insurance. Moreover didn't the realtor informed your husband that the property is located in the flood zone?
Thanks
I agree with you. Normally the lenders ask the borrowers to get a flood insurance if the property is located in the flood zone. In my opinion Charter Mortgage should have informed your husband about it. Its quite surprising as to why they haven't asked your husband to get a flood insurance. Moreover didn't the realtor informed your husband that the property is located in the flood zone?
Thanks
If your home was remapped, they may have had old maps indicating NOT in AE. What does your survey say? If it says it's not in AE, then there was no nondisclosure.
I think they have not followed the basic principle of good faith.I do not know what is your next course of action but it is for very sure that you can really ask to them in writing that they haven't informed it to you when you purchased the home.
But again I do not think they will give it in writing so easily.So good luck for your future endeavours.
But again I do not think they will give it in writing so easily.So good luck for your future endeavours.