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The Appraisal process post Hurricane or other natural disaster
October 30th, 2012 3:44 PM

When a disaster is declared, it is not uncommon for investors (banks / mortgage lenders) to require that EVERY SINGLE HOUSE in the affected area with a PENDING LOAN be reinspected by an appraiser for damage prior to final approval of funding.  As a result of the large area affected by Hurricane Sandy / Cyclone Sandy, even areas that did not see widespread disaster / damage will likely still require an inspection of the property.

If your lender informs you that your property must be reinspected, they are acting on investor, or insurer requests.  As a result, the appraisers will be working diligently to reinspect the property, prepare the appraisal report and submit the final copy to the lender in order to close your loan as timely as possible.  There may be additional charges for these reinspection, which is expected for the cost of conducting business.   If so, ask your lenders what they can do to help with the charges (the appraisers need to be compensated for their time and other expenses of conducting the requested inspections, which is only fair).

If you were about to close on your loan within the next few days, follow up with your lender to see if your loan (closing date) will be affected.  Sellers should be prepared to be flexible and assist with the reinspection and accommodating the appraisers for access (if required).  Agents, set up possible back up plans for immediate closings that may be delayed.  The appraiser will do their very best to get things turned as quickly as possible.

This is not unprecedented - it happens any time there is a blizzard, flood, tornado, earthquake, etc.  You are not alone.   It is necessary for the bank / lender to verify that their investment / asset is still functional and habitable. Both parties have a lot of money at stake.

The vast majority of homes are just fine, and this will be evident to the lender in due time.  Good Luck!

 Tuesday, October 30, 2012  3:41:59 PM

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Posted by Kevin Ireland on October 30th, 2012 3:44 PMPost a Comment

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