The National Flood Insurance program expired on March 28, 2010 and Congress is out on recess. This is putting some Florida homebuyers that are trying to close on a home in a floodplain zone in quite a dilemma right now.
When a buyer is purchasing a house located in FEMAs, (Federal Emergency Management Agency) flood zone, the mortgage lender makes it a stipulation to the buyer to obtain a separate flood insurance policy. This is in addition to a regular homeowners insurance policy. If the buyer is unable to obtain the policy, then the lender most likely will not agree to make the mortgage loan, and the buyer will not be able to close on the house.
Congress is out until April 12.
Realtors are pushing for the program to be renewed.
Homes are currently left unprotected because of the expiration. If the program isn't reinstated it could cripple home sales in floodplain areas.
The hope is that Congress puts this important issue at the top of their list of things to do when they return to Washington.
Sandy Shores Realtor, Melbourne FL Real Estate
Brevard County Real Estate and Investing
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Thanks for a thought provoking post!
This situation is driving us crazy as well (we're near the Delaware River). We have sales waiting to close!
Sandy
Washington has dropped the ball on this.
Good luck and success.
Lou Ludwig
Sandy, I'm reading that some insurance companies have procedures in place to be able to close with previously current policies. But this never should have happened.
This is pretty crazy. I hate to even get political, but what more can we expect when the government runs any program.
Wayne and Lynda, It's really not a good situation.
Loren, Some reports that I've read indicate that the issue may not be looked at until April 22. That's a long time away for many home buyers.
Lou, Yes, they certainly have.
Gabe, I have heard the same thing too. But I know some buyers have been left in a jam.
Rob, Well it certainly should have been something that was addressed prior to the government going out on recess.
Sandy this Congress in my opinion is absolutely worthless to the hardworking Americans trying to provide for their family and get ahead. At least we have health insurance in 2014 right??