First off, we just wanted to say that we are so thankful that Hurricane Irma didn’t cause as much destruction as we all thought it would! We are so happy that our agents, their families and our families are safe!
There is definitely damage that needs to be repaired, but luckily, she didn’t hit as hard as predicted. So, with our entire state declaring a state of emergency, what can we expect to see over the next few weeks and months regarding real estate? Let’s take a look!
As mentioned above, FEMA has declared a state of emergency for the entire state of Florida. FHA, VA, Freddie Mae and Fannie Mae all follow FEMA’s orders, so there has been a halt on lending until October 1st, 2017. This means that they are not insuring loans until that declaration is lifted.
However, there are some lenders that are getting back to work and having their investors indemnify loans. But, this is truly a case by case basis. Be sure to connect with your lender and ask what their policy is during this time.
Big banks such as Wells Fargo and Bank Of America typically don’t lend during this time and will most likely wait until October to resume lending operations.
If a property had been appraised before the declaration was made (September 6th), it will need to be appraised again. They will have to come back out and inspect to make sure there is no new damage to the property from the hurricane.
Unfortunately, this causes a bottleneck with the transactions because there are only so many appraisers.
You’ll need to first check with your lender to see if they are conducting any business during this time and if they are, check with your insurance provider to see if they are as well. They may not be issuing any new policies until the declaration is lifted in October.
Title companies typically continue to work during situations like this. You will likely experience a delay due to the fact that they were closed for awhile and are now trying to catch up.
It’s very important to note that if you are working with a seller during this time, you’ll need to get an extension. There is a clause in the contract for situations like this, just be sure that you get that rolling as soon as possible.
Unfortunately, the media has a way of presenting this disaster as worse than it actually is. Don’t be surprised if the market dips briefly. People that were thinking of moving to our beautiful state may rethink their decision after this hurricane season. Don’t worry though- it will pass (especially when winter hits hard up north 🙂
While this hurricane has caused a lot of inconvenience (both in real estate and other things), just keep in mind that it’s all temporary! The October 1st date could also be lifted earlier so that would help things get back to normal quicker!
At Dalton Wade we believe that today’s buyers and sellers need a trusted resource that can guide them through the complex world of real estate. With our extensive knowledge and commitment to providing only the best and most timely information to our clients and agents, we are your go-to source for real estate industry insight and advice. Contact us today to learn more!