Re: this is something that I have been thinking about since Harvey.....thanks for the update .....I am thinking that when the subprime loan situation occurred many owners defaulted on the mortages simply and only because they were underwater financially while the homes were in perfect condition .....so some financial institutions somewhere will end up owning some bad paper ....can they possibly securitize it by bundling it with some good paper .....I think not this soon after 'the big short' ......just seems like there might end up being some areas that just do not get rebuilt ....especially considering whether severe hurricanes have anything to do with anthropogenic global warming or not ,if enough people believe that they do then insurance rates will go up and fresh buyers will be leery and demand discounted prices ....gov might find opposition for huge subsides to rebuild in 'snake pit' areas .....have to wait and see what happens ....my sympathies to those in the Houston and florida afflicted areas...life is difficult enough w/o the current problems they are having
Re: this is something that I have been thinking about since Harvey......say a mid...From the sentiment I have seen and gathered from people in that same situation is they all mostly plan to rebuild. Some, dont even know how due to lack of money. FEMA does do loans to homeowners in that situation that lacked insurance. I have seen MANY stubbornly rebuild. 2 years IN A ROW! And those same homeowners now faced with rebuilding a third time due to Harvey. We have had significant floods in Houston in 2015 "Memorial day floods", 2016 "Tax day floods" and now HARVEY. Many that flooded for a third time will be seeking a FEMA "buyout" but will get far less than market or appraised value. I think most people in Houston are just too stubborn. They keep repeating the same mistakes. If I EVER lived in a house that flooded I would BE GONE ASAP and sell to minimize whatever loss I faced but I wouldn't repeat such a traumatic event. But, You just described what most of the Harvey victims here are facing. No flood Insurance and soon to be upside down on their mortgage. And too add insult to injury the way Federal flood insurance works for those with mortgages is the money first goes to their mortgage company and only AFTER the homeowner has paid and made repairs then the money is transferred to the homeowner for reimbursement. It can be broken up into smaller amounts for those that cant afford to do the repairs all at once but still, it takes liquidity to make repairs even with flood insurance. Only those without a mortgage get the money sent directly to the homeowner.