Secret #1 - 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:
James Carter
404-213-5706
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.
Stay tuned for Secret #2.
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