OT: legal/financial question about refinance

  1. You have chosen to ignore posts from WhirledPeasPlease. Show WhirledPeasPlease's posts

    OT: legal/financial question about refinance

    We're in the middle of a terrible refinance (aren't they all?). We're not in a flood zone, I have a letter from FEMA stating that we're not in a flood zone and legally do not need flood insurance. The mortgage companyis requiring that we have flood insurance regardless. The cost is prohibitive. 

     

    Do we have recourse? Or are banks still so unregulated thatthey can do whatever they want, regardless of legal government documentation? We'll lose thousands of dollJustin non-refundable refi deposits if we pull out of this refinance. Can we never refinance again because of this?

     
  2. You have chosen to ignore posts from GoneToTheDogs39. Show GoneToTheDogs39's posts

    Re: OT: legal/financial question about refinance

     You should have a real estate attorney (not the one representing the bank) for any real estate transactions imo.

    He would be the best person to advise you how to proceed.

     
  3. You have chosen to ignore posts from MissWolff. Show MissWolff's posts

    Re: OT: legal/financial question about refinance

    Sorry WPP, I've done three re-fi's and they've never been too painful.  Who is handling your closing?  This attorney should be fighting for you. In addition, so should your mortgage broker. It's in their best interests (albiet financially) to get the deal done.

     

     
  4. You have chosen to ignore posts from WhirledPeasPlease. Show WhirledPeasPlease's posts

    Re: OT: legal/financial question about refinance

    We're going through DH's employee credit union (never again) and we didn't think we needed anattorney for a refi because we didn't have one for our last refi. Maybe it's worth it though.

     
  5. You have chosen to ignore posts from ALF72. Show ALF72's posts

    Re: OT: legal/financial question about refinance

    If the mortgage company is requiring it, then you either need to get it or use a different mortgage co. I owned a condo in Brighton, near the reservoir, but not remotely in an area that flooded, much less got big puddles. I was still required to get flood insurance. 

     
  6. You have chosen to ignore posts from WhirledPeasPlease. Show WhirledPeasPlease's posts

    Re: OT: legal/financial question about refinance

    Ugh, I'm so angry about this. Apparently the financial collapse changed little and banks can still do whatever they want, regardless of reality or law. The flood insurance would be several thousand dollars a year; if we could afford that we'd get a bigger house. ALF, I can't believe they made you get flood insurance for that. 

     
  7. You have chosen to ignore posts from crackersandcheese. Show crackersandcheese's posts

    Re: OT: legal/financial question about refinance

    We went through flood insurance drama when buying our first home last summer. Previous owners were not in a flood zone, our bank said we were. The cost is unbelievable. When is your letter from FEMA from? Flood maps have been revised recently due to the number of "100 year storms" we've had in the area. It may be that your map has been revised recently and you are now in the flood zone.

    We had a land surveyor come out to measure the elevation of our home. The maps are not property specific, so if you can prove that the base elevation of your property is above the flood zone elevation (by even an inch) you can file a map amendment with FEMA. Land surveyors are expensive though. Our neighbors have lived in their home for 20 years and are suddenly now in a flood zone. They decided to just pay off their mortgage rather than pay for the insurance the bank requires.

    Flood insurance is extremely complicated and I found it very hard to get accurate information from anyone.

     
  8. You have chosen to ignore posts from WhirledPeasPlease. Show WhirledPeasPlease's posts

    Re: OT: legal/financial question about refinance

    The flood map was redrawn in Feb 2010 and the letter is the determination from that. Part of our backyard is in the new flood zone (even though, like ALF, we've never gotten a puddle in the yard) but our house is out of it. Flood insurance would be $8k per year! We may have to sell the house. 

    We're looking into a land surveyor too but apparently it could take a year! This is all just insane. We'll probably never be able to refinance again. I think we're just f'd. I'm so angry that banks can do whatever they want and we have no recourse, even with all of our documentation. 

     
  9. You have chosen to ignore posts from kargiver. Show kargiver's posts

    Re: OT: legal/financial question about refinance

    Shop around; if the risk to their investment is as low as you believe it is you'll probably be able to find a lender who doesn't require flood insurance based on the pertinent actuarial table.

     
  10. You have chosen to ignore posts from Novembride. Show Novembride's posts

    Re: OT: legal/financial question about refinance

    Shop the loan, but you may run into the same issue.  You are not just borrowing against the house, but against the entire parcel on which the house sits, inlcuding the back yard that is now in a flood zone.

    Can you refi through your exisiting bank/ mortgage co that might take a renewal of your current insurance?

     
  11. You have chosen to ignore posts from Winter2011Bride. Show Winter2011Bride's posts

    Re: OT: legal/financial question about refinance

    Since your yard is in the flood zone, there is a chance that you could get water seepage into your basement. Shop around, but you'll probably have this issue else where. Like Novem said it's not just the house the bank is taking into consideration but the entire parcel of land, which is partially in a flood zone. Banks have a slew of new laws (2013) that protect the consumers in mortgage lending. They have to protect their investment (your property) if something should happen to it. You can look up the CFPB (Consumer Financial Protection Bureau) to see what some of these laws are.

     
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