To buy or not to buy...
Greeting BP'ers,
I hope you are all enjoying spring, beautiful weather and great real estate deals!
I am facing an issue with a home purchase and I have to admit, I'm in over my head. Actually, I'm over or under the floodplain depending on how you look at it.
My wife and I are currently trying to purchase a cabin on a lake. The original cabin was built in the 80's and was far enough back so that flooding was never an issue. However, an addition was added in 2004. The building site was properly surveyed and the new structure was deemed "above the flodoplain". Then Hurricane Katrina hit and FEMA recast the boundaries for a new floodplain. The owner of the home never applied for a LOMA from FEMA (love saying that).
With all the topographical subtleties, I understand why the new addition it considered in the floodplain. I also understand that the new addition is built above the flood plain. However, it is only slightly above the floodplain. There are certificates of elevation that state it is out of the floodplain. As I said earlier, it was never filed with FEMA.
At this point, we are a month out from closing. Floodplain insurance is over $5,000 per year and we would rather not pay that. If we cannot get the LOMA, this will kill the deal.
I guess my questions are as follows:
Has anybody else ever had to deal with this?
Was acquiring the LOMA easy or difficult? (I have already applied for it online.)
Is it smart to buy close on the home hoping the LOMA will be awarded to the property? (I get reimbursed for the insurance money if it does. If it doesn't...)
Any advise you have on this would be HUGELY appreciated. Thank you so much for your time!
Cheers,
Matt