Lending and Rebuilding After Sandy
In the aftermath of Sandy, many municipalities and their various departments, such as zoning and construction, modified their permit and approval procedures. Their goal was to enable the victims of flood, wind and fire and all other damages caused by the storm to begin to rebuild their homes and their lives. Also, many contractors and sub-contractors flooded to the area to assist with the increased demand for re-building.
However, in the quest to re-build their homes, many residents found the selection process to find funding to rehab or rebuild their homes very intimating and disheartening. Many residents discovered the hard way that they had minimal flood coverage, or in the alternative, no flood coverage at all. This group of under-insured or non-insured included many primary home owners, as well as secondary or rental home owners.
Additionally, some of these residents have existing mortgages on these properties that they still are legally responsible to pay.
Fortunately, there have been many changes in the underwriting guidelines for mortgages. These changes are anticipated to greatly impact the real estate market and provide these Sandy impacted homeowners the ability to obtain lending to rehabilitate, raise and rebuild their homes.