Who put my home in a flood zone?

 

 

 

 

 

 

 

 

 

 

 

 

 

You have lived in your home for years and you decide it is time to move on and move out.  You are filling out the seller’s disclosure and come to the part of the 100-year flood plain. You know you home is not, cause it is on a hill for crying out loud. But your Real Estate Professional, probably a Keller William agent, insists on checking the FEMA map. Reluctantly you do  and SURPRISE, you now live in a flood zone. Of course, there is very little information about when this was decided.

 

I’m Selling so who cares?

Ok so your are, but this does not affect you now does it? I mean you are moving out right? Well the buyer of your home will most likely have to buy flood insurances. Definitely if they have a government insured loan. And guess what? The best part is it would cost $2400 per year for the policy, which is $200 a month! We all know that insurance premiums only go up.

Do you think your buyer would prefer your home or the home down the block which is not in the flood zone (YET), that will cost him/her $2400 per year less in insurance?

Congratulations you home is now worth less, as many buyers simply refuse to buy a home in a flood zone. And the ones that do, take the insurance in consideration in the price they are willing to offer for the home. (Unless of course you can convince some poor sucker that it is noah’s arch and was specifically designed for it)

 

This must be a mistake!  

There are only two houses in the entire neighborhood that are. Your home is on a hill for crying out loud. Call me crazy but wouldn’t it make more sense that the homes at the bottom of the hill would be at more risk of flooding? But, nope, those houses are safe, as are the neighbors on either side of you.

OF COURSE you are not going to let FEMA tell you what’s up! You are ready for a good fight.  You contact FEMA to inform them that they have no right to do this to you, and that they don’t know who they are messing with.

Beware of any form with “EZ” in the title

FEMA’s response is simply an email with a Letter of Map Amendment (LOMA) form that has the term “EZ” in the title.  Guess that is supposed to make you feel better as the whole process appears to be anything but easy. You will have to submit:

“One copy of the subdivision plat map (with recordation data and stamp of the Recorder’s Office) or a copy of the property deed (with recordation data and stamp of the Recorder’s Office), accompanied by a tax assessor’s map or other suitable map showing the surveyed location of the property with respect to local streets and watercourses; a copy of the effective FIRM panel; and a map scale and North arrow for all maps submitted.”

As well as the “EZ” form.

After detective work that would impress even Sherlock Holmes, you uncover all required documents. You ship them and are one proud home owner. You have showed them! FEMA reviews your flood designation and will let you know their decision. (Apparently, some information can be obtained from a ‘map repository’, wherever that is.)

In the mean time, your bank may have noticed the change of status too and decide to purchase the flood insurance for you and you have no way of stopping that from happening, unless you buy flood insurance yourself.

FEMA Decides…

Of course if  FEMA still decides that your home has a chance of getting flooded, you will have to fork out the money and hire a surveyor. He will determine if your home is above Base Flood Elevation. (At this point you will be tempted give the surveyor some incentive to say it is but you won’t cause that would be illegal.) The stars may line up just right  and you obtain your much treasured Elevation Certificate and send that to FEMA for review. Eat your map FEMA.

Did you say review? YES for review!

You may want to join the circus at this point!

Guess what? They can still reject it! If you decided to sit it out and did not join the circus you will just have to accept it, buy the insurance, check yes on the seller’s disclosure and offer your home for less than you ever thought of.

However when you buy your next home you make sure it is on top of Mount Everest. Although FEMA may decide it’s ice may melt and you may once again be in a flood zone!

source: FEMA.gov