this is something that I have been thinking about since Harvey......say a middle class home buyer lives in a house that was worth $650,000 before the storm .......say that he had $250,000 equity in it before the storm ..iow he still owes $400,000....say that he is uninsured and it takes $200,000 to rehab it ...and after the rehab it is worth $500,000 because it is now damaged goods and in a known flood zone ...say he is a retiree....would this become jingle mail instead of the owner rebuilding ??? and if he did decide to rebuild would the bank lend him money to do so........ and if the current owner walks would the bank after taking a bath loan another person a loan to purchase the property and possibly repeat the same thing in 5 or 10 years??
Re: lower end victims don't have flood insurance and won't get checks... --Not true, I can assure you that here in the Houston region it was mostly UPPER MIDDLE class that was affected most. Even a modest percent of affluent to wealthy were affected. Pre storm developers went wild building houses anywhere they wanted. (HA, what permits). Many higher end subdivisions went up in and around reservoirs. Along bayous and creeks etc. This storm actually pummeled the upper classes to a higher degree. And a very small percentage of anyone. (less than 20% carried flood insurance). Many poorer areas didnt even flood.