New Orleans Real Estate News: March 2010

National Flood Insurance Program Expires | What's the Impact on New Orleans Real Estate?

As of midnight last night, the National Flood Insurance Program expired and I'm mad as hell.

From InsuranceNetworking.com:

The National Flood Insurance Program expired on Sunday after the Senate failed to pass the latest temporary extension to the cash-strapped program prior to the Easter recess.
Senators are expected to take action on H.R. 4851, the Continuing Extension Act, when they return on April 12th. For the past few years, the NFIP has survived on a series of temporary extensions as legislators have been unable to forge a consensus on the program. The primary point of contention is whether to include coverage for wind damage in the program.
“It’s unfortunate that the NFIP has fallen victim to the political process,” says Blain Rethmeier, spokesman for the American Insurance Association. “Ultimately the people who will suffer the most are property owners who need new coverage or who need to renew their flood insurance policies. One can only hope that Mother Nature is kind until April 12. Otherwise, there’s not much people can do.”

I don’t write about politics, I’m not a political person, BUT…Congress really dropped the ball on this one. And then they all checked out for a 2 week Easter vacation.

Impact on New Orleans West Bank Home Buyers

Many lenders are now requiring flood insurance as a condition for your mortgage loan, whether you are in a flood zone or not. If you are scheduled to purchase a home in the next couple of weeks AND the lender is requiring flood insurance coverage AND you have not already purchased your flood policy then you won’t be closing on your home.

Congress does not go back in session until April 12th, so that is the absolute earliest that we anticipate new policies being issued.

This could have additional fallout in the form of interest rate locks that expire for buyers during this time. Financial experts expect interest rates to rise this spring, so a 2 week delay could also have the unintended consequence of costing a buyer more in the long run with a higher rate on their mortgage.

Impact on New Orleans West Bank Home Owners

No changes are being made to existing policies, so if you were planning to increase your coverage between now and mid-April, put that thought on hold.

The biggest immediate impact, however, is on those home owners with a policy that expires during this period. No policies can be renewed until the program is extended. The risk, of course, lies in the possibility of a flood event.

If that happens, how many people who have paid their premiums each year (and continue to do so through their mortgage escrow accounts) will be left uninsured in the event of a disaster? Will Congress make the program retroactive when it is extended?

I have more questions than answers, but rest assured that I’ll share whatever I learn here in the coming days.  In the meantime, if you are scheduled to close on a home purchase in the next 2 weeks, you need to contact your lender immediately to determine if you will be impacted.

 

Search New Orleans West Bank homes for sale What's Your New Orleans West Bank Home Worth?


Terri and Lisa | The West Bank Living Team For more information about home buying or selling on the West Bank of New Orleans, or relocating to or from NAS JRB New Orleans, please contact the West Bank Living Team. It would be our pleasure to have the opportunity to assist you with any of your real estate needs and have a little fun while doing it!

Originally published at West Bank Living

CCL logo

Your source for everything New Orleans

 

Search New Orleans homes for sale

Explore New Orleans neighborhoods

Take our New Orleans neighborhood quiz

 

fb like button      instagram       yt logo

Comment balloon 39 commentsLisa Heindel • March 29 2010 12:46PM
National Flood Insurance Program Expires | What's the Impact on New…
share
As of midnight last night, the National Flood Insurance Program expired and I'm mad as hell. From InsuranceNetworking. com : The National Flood Insurance Program expired on Sunday after the Senate failed to pass the latest temporary… more
February 2010 Home Sales and Real Estate Market Reports for Algiers…
share
Current real estate activity in Algiers Point : 25 single family homes are currently for sale High list price $389, 000 Low list price $113, 400 Average list price $261, 336 Median list price $259, 900 3… more
312 Helis Drive | Charming Home for Sale in Waggaman LA
share
Just Listed – Waggaman LA home for sale at 312 Helis Drive - only $99, 000 New on the market, 312 Helis Drive is a charming home in the Live Oak Manor subdivision in Waggaman, LA. Offering country living just minutes from New… more
February 2010 Home Sales and Real Estate Market Reports for Algiers,…
share
Current real estate activity in Algiers LA 70114: 105 single family homes are currently for sale High list price $389, 000 Low list price $16, 900 Average list price $140, 214 Median list price $113, 400 … more
February 2010 Home Sales and Real Estate Market Reports for Westwego,…
share
Current real estate activity in Westwego LA: 143 single family homes are for sale High list price $330, 000 Low list price $20, 900 Average list price $127, 934 Median list price $115, 000 26 homes are… more
Sellers Divorcing! Must Sell!… or What Not To Tell A Buyer Agent
share
Sellers Divorcing! Must sell!! That was what I read recently in an agent’s remarks in our local Multiple Listing Service (MLS). Now, I’m all for agents communicating with each other that a seller is motivated (although you would think that the… more
FOR RENT | New Orleans LA Home Near Bayou St. John | 3058 Dumaine…
share
We just listed this adorable house only 3 blocks from Bayou St. John on the outskirts of Mid City in New Orleans It’s a gem of a rental, with 3 bedrooms, 2 full baths and loads of extras. Not your typical lease property, 3058 Dumaine St… more
February 2010 Home Sales and Real Estate Market Reports for Marrero…
share
Current real estate activity in Marrero LA 70072 : 259 single family homes are for sale High list price $2, 300, 000 Low list price $24, 500 Average list price $163, 682 Median list price $139, 900 64… more
The Tree Man Is Here! The Tree Man is Here!!
share
I know, it’s kind of lame that I would get excited that the tree man showed up at my house today. But he’s my favorite guy at this time of year, because he keeps us from being inundated with Buck Moth caterpillars every spring. See this mean… more
February 2010 Home Sales and Real Estate Market Reports for Harvey LA…
share
Current real estate activity in Harvey LA 70058 : 152 single family homes are currently for sale High list price $539, 000 Low list price $500 (HUD property with pre-existing liens on it) Average list price $180, 946 … more