The Hurricane Sandy after-effects seem to just keep on coming. This time, the hurricane appears to be affecting loans and the housing market in new and unexpected ways. Since the Federal Emergency Management Agency (FEMA) has declared portions of Maryland a disaster area, it will now affect loan applications in those areas being processed by lenders.
This disaster declaration has lenders in these areas requiring homes to be re-inspected for damage prior to closing loans. Sellers and buyers alike can expect their house’s exterior to be evaluated for damage and if any obvious damage is visible, a full inspection of both the interior and exterior will be required. If any repairs need to be made due to these inspections, they will need to be repaired prior to a final appraisal to move the home loan process along.
At issue with this process is that not only will these inspections take more time prior to closing, but these repairs may also be delayed due to the severity of Sandy and lack of contractors and laborers since there is now an increase in demand for their services. For those wanting to refinance a loan or trying to modify a loan in order to stay afloat this extra waiting time may be very difficult both financially and emotionally. Rather than receiving the expected cash from a home sale, they may now be spending more time and money in order to be able to sell well – cash and time that they may not have.
While lenders are trying to accommodate accordingly for these extra delays and the difficulties they present to those affected, Sandy may have already devastated these families beyond repair.
If you or anyone you know is struggling with hardships that require assistance with loan modification, foreclosure assistance, or other mortgage issues, please contact a bankruptcy attorney. An attorney may be able to assist you in getting back on the right track and provide you the assistance that you truly deserve.
Source: The Washington Post, “‘Sandy effect’ expected to delay new loans in many areas,” Harvey S. Jacobs, Nov. 30, 2012