August 13th, 2014 4:55 PM by Eileen Denhard
I wanted to share this information with you as it could affect the timing of a purchase you currently have in process with any lender!
Many local governments have started declaring states of emergency due to all the local flooding; the next step is for the possibility of FEMA declaring us a state of emergency. If FEMA does this you will find all lenders requiring final inspections on any homes with appraisals completed prior to the date FEMA declared the state of emergency.
Outside of the potential FEMA intervention, many companies and investors have started to require their own final inspections based on the perceived flood damage and impact to the local area.
I have heard some rumors that Goldstar and Michigan Mutual are requiring these on all files in process.
If you get asked for an updated inspection or at least some picture based confirmation that there is no flood damage, it is a real lending concern, and has been brought to the forefront this week.