Did Hurricane Sandy interrupt your home loan? Hereâ€™s what you need to know.
By: Nicole Gates
Bottom line: If you were in the process of obtaining a home loan that has not closed yet, and the property is in a FEMA named disaster area, you will be required to have your property re-inspected or fully appraised again prior to closing. This applies to counties in Connecticut, New Jersey, Delaware, Maryland, New York and Rhode Island detailed in item 3 below.
Here’s how to determine if you need a re-inspection OR full appraisal for your property before you can close your loan. This applies to both home purchase and refinancings:
1) For properties inspected/appraised on or prior to 10/29, you must have the property re-inspected by an appraiser prior to closing.
Each bank or lending investor has different requirements for the disaster re-inspection. Below is a summary of the requirements. Please talk to your loan officer about what will be needed, as they have the exact requirements for your specific loan. In addition, there may be fees for this re-inspection, which your loan officer can advise you on too.
Disaster Re-Inspection Report with exterior photograph
Disaster Re-Inspection Report with exterior photograph completed by original appraiser
2) For properties appraised on or after 10/30, you must get a FULL appraisal until the expiration of the disaster notice (generally 120 days from the date of the disaster event, but this could be extended).
- For FHA streamline refinance properties that don’t need an appraisal or HARP (DU Refi Plus or LP Open Access) program loans, a Disaster Inspection Report with exterior photograph will be required.
3) Below are the following counties that have been named FEMA Disaster Areas:
Mashantucket Pequot Indian Reservation
New Haven County
New London County
Delaware: ALL Counties
Maryland: ALL Counties
Rhode Island: ALL Counties