Northeast Faces Home Sale Delays From Irene
Northeast Faces Home Sale Delays From Irene
Many home sales in the Northeast have been put on hold following the aftereffects of Hurricane Irene last weekend, which sparked flooding and caused damage in about 11 states.
"What has to happen — or what is required — is that [many homes] need to have a re-inspection completed on the property by the original appraiser to verify no damage has been done and the value of the home has not been affected," says John Walsh, president of Total Mortgage Services, a lender based in Connecticut.
Walsh estimated that anywhere between 15 percent to 50 percent of his company’s pending mortgage applications will need re-inspection.
Buyers with pending home purchases and home owners with refinancing applications in FEMA-designated disaster areas could be impacted by the re-inspections.
If severe damage is found, financial institutions may not provide loans to buyers on the property.
Andrew Wilson, a spokesman for Fannie Mae, told HousingWire that it's too early to tell how many purchase and refinancing applications will be impacted by Hurricane Irene. However, he said that home owners with Fannie Mae loans whose homes had flooding or other damage from the storm may qualify for a loan forbearance.
Source: “Hurricane Irene Could Cause Home Refinancing, Purchase Issues,” HousingWire (Sept. 2, 2011)
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