Posted on: 22nd Jul, 2009 09:49 pm
so we purchased a home 1year ago and at closing the abstract company said we were in a flood zone. we panicked and started to research what that meant. it meant flood insurance that we could not afford. we would not have purchased the home except that wells fargo, our lender, clearly stated to us multiple times that we were not in a flood zone and then carried the loan for one year without any changes until we called them. the agent even went so far as to ask who kept telling us we were. after 1 year we tried to refinance and the new company wouldn't carry us without flood insurance as they stated we were in a flood zone. we went back to wells and asked why this was in question again to which they insisted that we were not in a flood zone again! they said we could launch an inquiry to which we did and now they are saying we are in a flood zone. they made the mistake and now they are trying to change the terms of the loan. i was told that lender's can't do this and that in this circumstance they would be liable for false information to which they would have to reimburse us for damage or harm caused by the mistake. which is right?
Hi,
As your house is in a flood zone, you will have to buy flood insurance in order to get a loan. No lender would want to offer you a loan without insurance, protecting the house against flood related casualties. Wells Fargo should have given you the correct information. You can claim compensation from them for giving you false information regarding the house. But it is not certain whether they will admit they had given you wrong information and offer you compensation.
What you can do now is, you can file complaints against them with the BBB, FTC and the Office of Consumer Affairs in your state. You can refer to the following pages to file a complaint with BBB:
http://www.bbbonline.org/consumer/complaint.asp
https://odr.bbb.org/odrweb/public/NewComplaint.aspx?ComplaintTypeID=1&countryid=1
You can also get in touch with the Office of Attorney General in your state and file a complaint with them against your mortgage company.
As your house is in a flood zone, you will have to buy flood insurance in order to get a loan. No lender would want to offer you a loan without insurance, protecting the house against flood related casualties. Wells Fargo should have given you the correct information. You can claim compensation from them for giving you false information regarding the house. But it is not certain whether they will admit they had given you wrong information and offer you compensation.
What you can do now is, you can file complaints against them with the BBB, FTC and the Office of Consumer Affairs in your state. You can refer to the following pages to file a complaint with BBB:
http://www.bbbonline.org/consumer/complaint.asp
https://odr.bbb.org/odrweb/public/NewComplaint.aspx?ComplaintTypeID=1&countryid=1
You can also get in touch with the Office of Attorney General in your state and file a complaint with them against your mortgage company.
better business bureau, in a case like this, is far less likely to be helpful than the agency that governs lenders like wells fargo. your closing documents will tell you who to contact.
Thanks for the information. It looks like dumping the house and starting fresh is our best bet. I should have costarred with Tom Hanks for the money pit we entered in!!!!
sorrry but if your house is in flood zone no company will finance without flood insurance.
previous company had financed you how i didnot know if its their fault ask them how to comeover this.
you have any legal paper that company told you that this property is not in flood zone.if you have the document file a case against company.
previous company had financed you how i didnot know if its their fault ask them how to comeover this.
you have any legal paper that company told you that this property is not in flood zone.if you have the document file a case against company.
If the lender is at fault, that may constitute violations which could force the lender to modify your loan. I recommend that you seek a free pre-approval from an attorney to determine what your options are.
okay, i'm game...what is "free pre-approval from an attorney"????????
I am waiting to hear the answer also. ...should be interesting.
