Posted on: 05th Jan, 2009 11:25 am
When I purchased my home the lender provided a flood determination certificate from a contract company stating my house was not in a sfha(special flood hazard zone). The original lender then sold the loan to wells fargo bank and I was then notified by wells fargo that my house was in a flood zone and they then began applying flood insurance. After researching I found that the property had been in a special flood zone since June of 2003. Under U.S.Code it say's the lender had the undelegable obligation to determine property's location. Are lenders in colorado responsible for this.
Hi mmcguane,
Yes, the lenders should have informed you that the property is in the flood zone. In my opinion, yes, they should have determined the location of the property and asked you to go for a flood insurance during the origination of the loan. But I guess now you have a flood insurance as Wells Fargo has notified you that the property is the flood zone. In case if there is a flood in your area then this insurance will help you.
Thanks
Yes, the lenders should have informed you that the property is in the flood zone. In my opinion, yes, they should have determined the location of the property and asked you to go for a flood insurance during the origination of the loan. But I guess now you have a flood insurance as Wells Fargo has notified you that the property is the flood zone. In case if there is a flood in your area then this insurance will help you.
Thanks