Thanks to George Kasimos-stopFemanow for helping to contact Senator Menendez again and for connecting with someone to review my flood policy. Wondering if any other new homeowners not directly affected by Sandy are having similar issues as I am. I bought my house in Gloucester County, NJ in March of 2013. Initially it was listed under the USDA 0% financing on the USDA website, it was listed as eligible. I was a few weeks from closing and was informed at the last minute that USDA would not do the loan because the house was in a flood zone. I was able to get a gift from my parents to go through FHA at that point but was informed that the flood insurance would be $1076 for the year. Several months after closing, I was informed that since the house was pre-firm and the agent claimed they were not informed that the new regulations were in affect so I had to get a flood elev. certificate which I did. My rate jumped to $3080. According to FEMA the rates will go up to between $5,000 and $7,000 a year which is not affordable for me. Selling the house at this point, would mean I would owe the bank a TON of money even if I could get someone to buy it with the insurance premiums. I can fill in the basement, move the utilities which I believe will mean replacing the heating/cooling system due to the basement being a converted root cellar so it has the low roof and the ducts are consequently low. This will also mean a small addition which of course puts me even further under water when you take into account the significant loss in value from the insurance rates or the other option that is being researched is demolishing the house, and rebuilding without a basement and building a few feet up that may even take me out of the flood plane but again it comes down to money. Im trying to look at all options so if anyone knows of any good real estate lawyers that serve Gloucester County it would be greatly appreciated since I am trying to avoid forclosure due to the insurance premiums in a few years? I am grateful of course to currently having a roof over my head and not having to worry about insurance payouts but if anyone has any experience with my situation or ideas, I would certainly appreciate it.
Posted on: Sat, 03 Jan 2015 20:13:18 +0000