Keep Your Deal from Drowning
One or two times a year, the flood gates open…..figuratively, and an independent flood certification notifies me that one of the properties I am financing is in a flood zone. Informing all parties the subject property is in a flood zone is no fun. To the naked eye, the subject property does not look like it is in flood zone. Many times the seller did not have to buy flood insurance when he purchased the home. Telling all parties involved that the topography has changed since the property was last purchased is like Noah trying to convince his neighbors that live on the hill that they too should build an ark.
Fortunately, I have a good solution for you and your clients when you run into this scenario. Do not linger in disbelief of the determination. Realize the first step is to work with your lender to appeal the determination by the flood certification company. Avoid the natural temptation to talk the lender into believing you. Instead find out what your lender requires to solve the problem….to prove the subject property is not in the flood zone, flood insurance is not required, and the closing can take place…and ultimately the home can be sold.
The solution is to contact a land survey company, have an elevation survey shot, and then work through the process of having the flood certification company amend their certification. Now the price and time it takes to do this will vary. Time is critical to keeping the closing on track. The sooner you have the elevation survey shot and work to correct/amend the flood certification, the more likely you are to avoid a the black cloud of uncertainty that blows a termination and release to the property from the south.
The last flood certification issue I had was this past July. The listing agent, Tracy Haskins, found the perfectly qualified man for the job! His name is James Carter with Carter Land Surveying. Simply put, he knows the drill. James knows exactly what to provide AND the fastest way to resolve the issue with the flood certification companies. His knowledge is invaluable and his fee is fair. Save this information:
If you have ever run into this issue, you know how important a James Carter is. If you have not…hope you do not, but anticipate that you might, and keep this number for future reference. My goal is to share resources and expertise that may keep your sale on track and not be washed away.
Gary Welch and Jeff Morris are Atlanta mortgage bankers who are able to help you choose a mortgage solution that combines the right down payment, monthly payment and tax benefit for your needs. More information pertaining to industry related news can be found on our blog at loanstarteam.com/blog.