Home builders getting a Disaster Windfall from FEMA

Do you have an original thought? If you have a "thought" at all? Originally Posted by LexusLover

Loonie lexy is having a meltdown. Originally Posted by bamscram

Still haven't grown up, I see.

Thanks, Sharky, for setting the standard of maturity for the board.

Before Harvey I became familiar with some City of Houston issues with issuing "remodeling" permits with respect to flooded houses and financing/refinancing issues for known flooded properties.

It occurs to me that lenders may be hesitant to collateralize loans with property that is subject to flooding and/or have been flooded .... AND .. since Harvey there has been criticism of the local governments (city and county) regarding "allowing" people to build homes in areas that are subject to flooding (which includes releases by the Corps of Army Engineers).

Those are the types of issues that was the subject of my questions/concerns ... and I was not challenging your knowledge base .... making an inquiry .... btw ...

the renting of flooded properties has already begun. Originally Posted by LexusLover

no worries, I did not think you were challenging me on my knowledge.

As far as being in a Flood prone area or even in the Flood Zone. I have never had an Underwriter decline my loan over that. If you are in the Flood Zone, we mandate Flood Insurance, just like Hazard.

What I am worried about is Sale Comps and or justifying to the Fannie Mae/Fredie Mac Collateral UW, asking why the appraiser used a comp 1-3 miles away and not one down the street. This is where you will see areas that have home sales ranging from $375k-$600k depending on stage of Remodel that have flooded or the one down the street had no damage. If home is remodeled and did not flood, it sells for top dollar, as opposed to the one that sold for $375k. That did flood and is not remodeled.

Just point of fact ... although there are exceptions it looks to me that the homes affecting by the water in the Houston metro area would probably average under $200,000 if in decent condition. In the City of Houston there are low-lying areas where property values are low, which flood easily even in a moderate storm.

"An issue" in this market has been that "comps" have been somewhat inflated, because "sales" prices have included all the closing costs and expenses stacked on the actual cost of the house. I recall the old S&L days when appraisals were based on the amount of the loan needed, which artificially increased values resulting in short sales, if any, down the road. But in those days there weren't "due on" clauses as much as there are today (almost universal). Inflating sales prices might be the work around for that tactic.

I think it's admirable that LLiarMan has the interest of the Houston homeowner at heart.

Of course it's just another group for you to SHART on!

^^^ AssUP is another one that needs to grow up!

Still haven't grown up, I see. Originally Posted by LexusLover

How boring can you get?

Grow up, ButtScramble.

Grow up, ButtScramble. Originally Posted by LexusLover

Double boring butt stupid.

Grow up!

You will probably discover in the long term the cities and states involved in Harvey and Irma will not receive a "windfall" of profit from the disasters. Nor will the citizens who are affected.

During the aftermath of each one of these "events" in the past dishonest persons have preyed on those affected and who have received benefits from the government/insurance companies and done everything from sign contracts, take money, and not done the work to doing incomplete or shoddy work using "used" or inferior materials, and crappy worksmanship.

The massive undertaking is difficult to monitor, and by the time the authorities get around to it the BUILDERS are long gone and have pissed off the money so no recovery can be obtained. The only gatekeeper can be the agency issuing work permits....who get overwhelmed with the paper work...and occasionally get "bribed." Originally Posted by LexusLover

That is so true, and also so sad. IMO the punishments for those who DO those scams should be LOSS of their bloody houses and any bank accounts, jail for a minimum of 10 years and PERMANENTLY barred from ever getting a license again as a builder/contractor..

"An issue" in this market has been that "comps" have been somewhat inflated, because "sales" prices have included all the closing costs and expenses stacked on the actual cost of the house. I recall the old S&L days when appraisals were based on the amount of the loan needed, which artificially increased values resulting in short sales, if any, down the road. But in those days there weren't "due on" clauses as much as there are today (almost universal). Inflating sales prices might be the work around for that tactic. Originally Posted by LexusLover

That is very true. Plus with some of those houses possibly STILL being "under water" on the mortgages from the 07 crash, they might not get even enough amount from the govt, to fully repair it, let alone full value..

Grow up! Originally Posted by LexusLover

Yeah but they will bitch they cant find enough illegals to work for dirt cheap wages. Originally Posted by The2Dogs

No the homeowners are the ones now wanting cheap labor!

How boring can you get? Originally Posted by bamscram

Hopefully he'll lose his internet privileges and be permanently banned from this site.