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My closing date is in 3 days. Today my insurance agent called me and told me that they are going to have to add flood insurance since the house is in a flood zone. Granted, the agent did tell me that the home was in a flood zone in the beginning but I think this screw up is on my insurance company. The insurance company has not got back to me yet with the quote but she did estimate that it would cost 800-1000 dollars per year. If so, that is going to push me out of my “comfort zone” or budget on what I want my total house payments to be. I called the real estate agent and she seemed like she was mad about this but she is pushing for a waiver to still get the deal done in 3 days. Honestly, I don’t want her to because I don’t want to close on a deal when I don’t even know what the quote is going to be. Can I get out of this deal?? Can I ask my real estate agent to not ask for a waiver to let it just ride itself out so we know what our quote is before we close??
If the insurance is as high as the agent estimated, our monthly payment will be about 100 or more higher than what our estimate that the real estate agent gave us in the beginning.
Lep……I’ve always had insurance. But my insurance people are just finding out that it’s in a flood zone.

2 Thoughts on Backing out of the deal before closing date.?
  1. Reply
    lepr0kan
    August 22, 2011 at 12:37 am

    To be honest you should have dealt with this in the beginning when you first found out it was in a flood zone. Since you’ve waited to the last minute to get insurance as long as you techincally still qualify for the loan with the new higher insurance payment in order to back out you loose not only your earnest money deposit but you’d also be responsible for the appraisal, inspections, and survey (if you had one). You can always back out, it just might come with a price since according to the lender, real estate agent and seller you technically don’t have a valid reason not to close.

  2. Reply
    kemperk
    August 22, 2011 at 12:49 am

    since one’s mortgage is rarely ever more than 25% of one’s take home
    pay, how is an increase of 10% of the
    monthly payment going to negatively affect you? Utilities will positively increase and so will all insurance
    you buy over your lifetime!

    If you wish, I can show you how to
    pay off your home faster but
    to squabble over a 10% increase
    in payments?

    I am sure the agent will be glad
    to pay your first 6 mo insurance
    costs!

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