If you have been considering purchasing a home in the Ann Arbor area you may be interested in knowing that the National Flood Insurance Program expired May 31. There seems to be some question as what home buyers will be doing and for how long. Mortgage companies can require flood insurance which will have to be purchased through private insurance companies for the time being. This could delay your closing. Be prepared. Here is the story below from Mortgage News Daily:

The National Flood Insurance Program is back on the front burner, since it expired on May 31, and, to the best of my knowledge, starting yesterday the NFIP did not have authority to issue new or renewal policies. Flagstar told its broker clients that “new policies will not be able to be obtained until at least June 7th, 2010. Paid receipts accompanying flood applications must be dated prior to June 1, 2010.” SunTrust told clients that “SunTrust will not purchase any loan where the structure resides in a Special Food Hazard Area without proof of flood insurance coverage in the loan file. Unless the borrower has obtained “private” flood insurance, the closing must be delayed until a declaration page is received for the required amount of insurance and the correct flood zone, or until such time funding for the NFIP is restored and SunTrust announces it will accept a copy of the application for national flood insurance along with a copy of the check for the premium.”