Flooded Homeowners Have Options

Dated: 10/03/2017

Views: 1304

Did your home incur damage due to the flooding during Hurricane Harvey and/or the Controlled Releases? We, at The Thelen Group, are here for you. We hear you, we feel for you, and we're here to help. I'd like to offer a few options and pieces of advice for our Houston/Katy area homeowners. 

If you're a homeowner in the Houston & Katy areas, there's a good chance you didn't have flood insurance. Which means you're left to foot the bill, live in an unfinished home, pay your mortgage, and figure out what to do from there.. on your own. You have options. Let me say that again... YOU have options. Here are a few options to help get you back on your feet and in control of your life, livelihood, and your home. 


Option 1:Apply For Disaster Assistance - FEMA

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Your first step in the recovery process should be applying for Disaster Assistance. You can apply by calling 1-800-621-3362 or by visiting www.DisasterAssistance.gov by October 26, 2017.  Once you apply, you will receive a call from a FEMA housing inspector. These inspectors carry photo identification and will have the FEMA registration number assigned to the home they are visiting. This inspection will help FEMA determine what federal aid is available to you. FEMA will also determine how much you will receive under the Individuals and Households Program (IHP). IHP provides financial help, up to $33,000, for flood victims regardless of flood insurance status. Keep in mind, that the maximum grant is $33,000 and not all will qualify for the full amount. For those that do not have flood insurance, the Small Business Administration offers loans up to $200,000. You can apply for the loan at https://disasterloan.sba.gov/ela 

This option is a great option for homeowners who want/need to stay in their home. This will help you get your house back to its original or better condition pre-Harvey. 

Please be advised: When applying for FEMA, you will also have to apply for the SBA loan. Go ahead and get that out of the way to speed up the process. 



Option 2: Refinance

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If you've already exhausted Option 1 and are looking for another way to stay in your home with some financial help, Option 2 may be for you. There are several different renovation loans available to help you take back control of your home. These FHA & Conventional loan's will allow you to borrow against your equity with a property that is "subject-to" repairs. With a renovation loan, not only can we close "pending repairs" but we can use "future value" of the home to potentially tap additional equity. For example: if your home is worth $200,000 now and the improved value is $250,000, then the lenders can potentially lend up to 95% of the improved value ($237,500) and we can close with a property in as-is condition. Repairs will be required to be completed immediately upon completion; no self-contracting can take place. All bids and contractors are required to be approved through the lender.  See if you qualify here. 



Option 3: Sell As-Is & Buy A New Home.

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If you've owned your home for a while and/or have some equity, this option may be for you. You have the option of selling your home as-is; gutted walls & all. Yes, there are buyers out there for these types of homes. Investors are actively looking for flooded homes to buy as-is. Another type of buyer looking to purchase your flooded home, although less likely, are homeowners that may want to live in your neighborhood and renovate the house to his/her discretion. Buyers are able to do this if they are 1. Cash Buyers or 2. Taking out a 203k FHA loan which allows them to purchase the home at as-is value and the lenders will loan the home buyers extra funds to renovate the home. 

The second part of this option is once you sell your home as-is, you have the option to purchase your new home with $0 down. The lenders all across the Houston area are offering the 203h FHA loan up until 365 days after the disaster took place. This loan is ONLY available to homeowners and renters that were affected by the flooding and their homes are declared "unlivable."  

This option will let you walk away from your flooded home, pay off your current mortgage, and help give you a fresh start in a new home. All of this can be done in 30 days. 



All of these options are great options and are there to help you get your life and home back to normal. Whichever option fits you best, we are here to help walk you through the process and make sure you're in full understanding of all terms so that you're comfortable with your decision in the long run. 


PSA: Even if you didn't get any helpful information in this blog, please please please do everything you can to stay far far away from foreclosure and/or short selling. 


If you have any questions whatsoever, please do not hesitate to reach out! Give us a call, send us a message, an e-mail, or a quick text! 


David Thelen

The Thelen Group

Keller Williams Premier Realty

713-585-0141

David@TheThelenGroup.com

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