Flood Zone Marketability

[ZZGAMAZZ]

In most cases, the flood zone affects the entire neighborhood...and the comps, so the value and marketability issues are already addressed, in numbers anyway.

I just add a blurb that the flood zone is typical for the entire neighborhood, and has a neutral to minimal effect on marketability and value.

Of course, their are the nightmares when just the subject is in the flood zone...

One of the review masters, possibly ACI Par Logic, asks for a flood map when a flood hazard zone is entered into page one. Does that mean that it is a FNMAE standard rather than a lender-specific issue if a reivew master calls it out?

 

[Carnivore]

One of the review masters, possibly ACI Par Logic, asks for a flood map when a flood hazard zone is entered into page one. Does that mean that it is a FNMAE standard rather than a lender-specific issue if a reivew master calls it out?

I did not read anything about including the actual flood map within the Report. So it seems to me they are adding this or should I say requiring you to do something beyond what the Selling Guide Says. It mostly a Lender/UW requirement. Read and Interpret it yourself. it not real clear

B7-3-06, Flood Insurance Requirements for All Property Types (12/14/2022)

selling-guide.fanniemae.com

P.S. Appreciate you pointing how to Print out the FEMA Page from the Link. I don't use that mode because it kind of Blurs/covers up the subject site. Either way is fine,

Nice feature of that FEMA Flood Site is you can really zoom in on your subject. In the Link above that's important for the UW to see just how the Flood area is affecting the Site. It's important for us also.

 

[Terrel L. Shields]

20 years ago we put a flood map in every report whether in a flood zone or not.

 

[Carnivore]

20 years ago we put a flood map in every report whether in a flood zone or not.

twenty or so years ago on every residential purchase and I think Refi's also they did a full title search, survey of the property for purchases, and a termite report. Additionally long ago if the property had well water a test by County health department was needed also.

Today many Attornies don't do a full title search, they go back to the last transaction only and they use their paralegals. Title insurance covers the previous time period.

My my how things have changed.

 

[Terrel L. Shields]

don't do a full title search,

And title companies won't give you your abstract back until you threaten them and they no longer rely upon abstracts and if you want one built it is a huge sum of money. Our title companies only check the last 50 years. That led to a nightmare for landmen for the oil companies. They ran title back 100 plus years and found reserved minerals that had been dormant for all those years. In fact, many mineral rights changed hands in the depression. One old banker personally bought many of the farms that his bank repo'd to keep the bank afloat, and he then kept the minerals and flipped the land as quickly as he could get a buyer. In the end his family had several thousand acres of mineral rights and didn't even know it. When the Fayetteville Shale play hit, those minerals were contested in court. I had calls from angry landowners about their mineral rights "being stolen" as they thought such claims were extinguished with time. They are not in most states, Louisiana being an exception. You have 25 years to develop the minerals or refile a claim, otherwise the surface owner gets them back.

Locally I know where a deed exists that sold the mineral rights to a local business man. His family refused to probate it after I found the deed. But the surface does not include that division in the deed. But when they were cleaning up the place, a bulldozer hit an old well head and gas came out of the well for several hours before dying. Seems the owners had been tapping the gas off the well to supply their home with natural gas.

 

[Carnivore]

The original question, 'the title of the thread' the answer is always Yes, No, Maybe This question is just like all the other questions we answer. If you refer to the FNMA Selling Guide then it gets more confusing about Flood Zones and the Subject. If I recall Correctly; in the past, any part of the Real Property(underlying site) is touched by the flood zone then it was reported by us as Yes! This triggered the requirement to include Flood Insurance(premium) in the settlement statement and the unintended consequence it reduced the Borrower's ability to repay that loan amount(qualifying) In other words it is an added annual Expense built into the Loan Escrow, this reducing the maximum loan a borrower could get. This applies to Refi or Purchase.

NOW they say this "
When a property is remapped out of an SFHA, the servicer must not require flood insurance. If the borrower provides a letter from FEMA stating the structure is no longer in an SFHA and requests that the flood insurance be canceled, the servicer must

• cancel the flood insurance, and
• maintain a copy of the letter from FEMA in the individual mortgage loan file.

Fannie Mae Servicing

servicing-guide.fanniemae.com

See the Emphasis on 'Structure' I take that to mean the actual SFR. footprint

This bothers me a little because the Flood Maps(even the interactive mapping site below) I don't believe are that precise. One thing that is not considered is new construction on a singular site outside of some traditional subdivision. Contractors improve the site by clearing and grading.

https://msc.FEMA.gov/portal/search

If it was me and I was purchasing a home that is touched by a flood zone; I would reconsider and maybe not buy the house or bite the bullet for flood insurance regardless of what the Pushy Lender says.

 

[Terrel L. Shields]

This bothers me a little because the Flood Maps(even the interactive mapping site below) I don't believe are that precise.

Clearly they are not accurate. That's why appraisers quit certifying the Flood zones and the bank now hires a service to do so. BUT look at this one. I appraised it years ago for a banker. I noted the lot was clearly in a flood zone but not sure about the building which was higher. Turned out they surveyed to see and sure enough the survey showed it would reach the lowest building corner but only about 6" up the foundation, or a full foot below the building floors...guess what? A couple years ago, water got into the building and the owner was indeed grateful that he had bought flood insurance that he thought was worthless at the time. They immediately went in and remapped the floodable area, as shown below. I also have appraised the building next door that is bermed up a little higher.

 

[Carnivore]

Terrel I had a real issue with my Grand parent's estate and the Executor(my cousin) over minerals rights. There is an old Coal mine on the Property. We did not own the rights to that coal. This coal mine was played out back then, due to dated technology. It is specifically identified as "Coal" My question to you:

Is the word 'coal' inclusive of all other minerals. Like Natural Gas, Crude Oil, Gold etc Reason I ask is that Fracking is big time in the vicinity of our old Home Place in West Pennsylvania.