Home Buying in 07675>Question Details

bpeachieswee…, Home Buyer in 73099

I was not told the house was in a flood zone. Now I find out I can't get lending because if the flood zone issues. Can I get my earnest money?

Asked by bpeachiesweet35, 73099 Mon Sep 24, 2012


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You may well be protected by theo mortgage contingency in your contract. Read it over carefully, talk to you agent, and better yet, your attorney if one is involved in the transaction.

Good luck and best,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes Thank Flag Link Fri Sep 28, 2012
Lets clear up a couple of things.
If you employed a lawyer to handle the sale part of his due diligence was to establish whether the house was in the flood area. If he failed to do so then he was negligent.
As i said before most contracts in New Jersey include a clause that entitles you to search the official site of FEMA and establish whether the house is in the flood area.
Most towns maintain a map with the flood area delineated so a simple call to the town building dept would have resolved the question.
Not all Mls sites have the question about the flood area. If the mls in question did have the question on the listing and the listing agent did not declare the house was in the flood area then that agent has a problem.
Last but not least - yes get your earnest money back. Again if you have a lawyer that's his job
0 votes Thank Flag Link Wed Sep 26, 2012
We were not given anything or even told about the flood zone. When we applied for a loan at our bank is when we found out. We have since been turned down for financing three times by three different lenders. The house is in a county that does not participate in the NFIP, therefore we are unable to get insurance through FEMA and the lenders will not accept the insurance we found through a private writer. The house is unable to be financed because of the flood issue.
0 votes Thank Flag Link Wed Sep 26, 2012
If the house was listed on NJMLS, the listing realtor MUST disclose that information. Were you given a copy of the listing? If it was not disclosed on MLS, I would suggest speaking with your attorney to see if you're entitled to recoup any monies spent. If you like the house and the flood zone doesn't bother you, then you could get flood insurance to satisfy the lender. Bottom line is that you need to speak with your attorney and follow his advice.
0 votes Thank Flag Link Wed Sep 26, 2012
If your sales contract has a mortgage contingency clause in it which most do & you were unable to obtain a mortgage for whatever reason you are entitled to get your full deposit back. You will just have to show a letter from the lender stating that you were denied a loan.
0 votes Thank Flag Link Wed Sep 26, 2012
you should have contigency that if you do not get a mortgage you can cancel.
if you spent any money on inspections and appraisal you may be able to sue for that money back if they failed to disclose to you that it is in a flood zone
0 votes Thank Flag Link Mon Sep 24, 2012
You need to ask this of your attorney how your contract reads but I'm wondering why you cannot get flood insurance and that would satisfy the lender.
0 votes Thank Flag Link Mon Sep 24, 2012
sure you can I assume you have a lawyer. Our contract states Buyer can get flood area report and if its in the flood area buyer may cancel the contract within 10 days of the date of the contract and get his deposit money back.
0 votes Thank Flag Link Mon Sep 24, 2012
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