Any county declared a disaster area is subject to a reinspection by an appraiser - appraiser needs to go back and notate in their report that the property has not been effected by the event. The 'event' has to have ended, and immediately thereafter the reinspection can take place.

I've dealt with this several times, most recently with superstorm Sandy.

I don't know about declaring the disaster "closed", but I know that we've always scheduled reinspections as quickly as possible after the disaster subsides (roads are passable/appraiser can get to the property safely for reinspection).

Sorry you're going through this, I have a client in the Houston area that was supposed to close on his first ever home on Monday, and now we're waiting for repairs on the home to be done due to wind and rain damage. We know they're lucky that the home being damaged is their biggest concern, though. Best of luck!

NAR has posted Transaction Guidance After Natural Disaster.

It mentions contacting lenders about re-appraisal.

  Perhaps one of the lenders on ActiveRain can weigh in on this.  

  Summoning

   Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi  

  Caroline Gerardo 

   George Souto 

   John Meussner 

  @joe petrowsky 

SO sorry that you're going through this, Diane. I cannot fathom what you and your fellow Texans are going through right now.

I would read the NAR piece and take the advice from lender members - I haven't been through anything like that and have nothing to share with you but, my thoughts and prayers.

I'm sorry you are going through this.  It looks as if Theo Shaw has an excellent link to an article that hopefully will be useful. 

I don't remember this happening after our flood in 2011 but I can tell you that you can expect a lot of  unpleasant surprises with FEMA.

Yikes, that does make sense though, at least the part abou the re-appraisal.  I wouldnt think the disaster needs to be closed, since this one will be a while.  Some houses have not been affected like others so the deals shoul dbe allowed to go through.   Best of luck with the recovery and all the work ahead. 

Looks like John Meussner has this one covered for you.  I cannot get my mind around the magnitude of the devastation.  The impact is not measurable.  

You have many answers here

I would have no  idea how long it will take FEMA to declare the disaster closed.  

 Maybe this FEMA URL might be a good place to start so you can find out?

https://www.fema.gov/hurricane-harveyhttps://www.fema.gov/hurricane-harvey

Many many issues for buyers and sellers are on the horizon

We went through this several years ago. It didn't matter if the property had been affected or not, the appraiser had to assure the bank that the asset was still sound. Some areas lost value and we had to start over. 

So sorry you all are dealing with this devastating flooding.  I cannot even imagine what you will be dealing with over the coarse of the next year or two.

I'm so sorry for what you are going through, best wishes and please keep safe.

We wish you the best with everything! 

You have some good answers here.  After Sandy, I believe ALL homes in the area needed a reappraisal and/or reinspection, even if no visible damage.  I've never heard of the need for disaster to be "closed" and not sure what that even means...and that could be months or even years.

Here, after Sandy, most roads were not even driveable 1-2 weeks (and major gas shortage with lines for 3-4 hrs).  One of our big issues was power and many areas did not have power for 2 weeks.  (This made it hard to find working gas stations).  And, of course without power, inspections as well as most clean up and/or repair can't start.

Also, be aware that in some areas, there may be major implications on insurance in addition to property values and/or the 2 can become intermingled.  This happened for a bunch of areas around the coast, and more so in Queens and on Long Island where they were harder hit.

I'm so sorry for you guys and your clients.  Of course there's all the immediate issues, but there's also a ripple effect on many businesses and that can last a long time.  Even for my flooring business, it was challenging.  Many projects that we were supposed to do either got postponed or canceled as customers had to dedicate money towards tree damage and roof repair and/or had to take family in from Long Island.

The other part that's tricky is that for those that had issues, and were covered by insurance, there were often long delays in getting insurance approvals as there were so many claims.  So the sooner someone files, the sooner they'll get things resolved. (once roads are passable).

John Meussner gave a detailed answer.... sorry for your horrible situation....

John Meussner gave you the answer.  

This  is a great example of how AR can benefit us all. When we come together as a community and share our common knowledge. Great work Community and AR.

Theo Shaw nailed this one!

Wow, glad you are safe. Please post about your experiences there, we can all learn from this.

Major challenges for buyers, sellers, appraisers, inspectors and lenders for sure...for a long time. No doubt some homes that were "sold" are destroyed.

I suspect that is will be a long time before things are back to normal.

Fascinating cause and effect in play here....Lets find out d.D

I cannot even imagine having transactions ready to close, and now are flooding, no power, etc.   

I am sorry for your business, I hope some New Orlean people can answer their experience from the past.

Unfortunately the 'wheels of progress in the government bodies do turn very slowly and only at the government's pace. 

I will defer to John Meussner's experience with a disaster of this magnitude.  He is absolutely right when he says that an appraiser will need to be sent out again ... as Fannie, Freddie, VA .. whoever ... will demand that it be done.   I would be surprised if the appraiser will not want some sort of verification that it's safe to re-enter the property too.  

I think much will depend on the specific area in which the property is located.  One area may see slower or quicker return to business/appraisal capability than another based on how quickly the flooding/damage allows it.   I fear you may be feeling your way as you go with this to some extent. Best of luck to you and your clients ... be safe ... and know that you remain in my thoughts and prayers ...

Gene

That I don't know.  The last time we had a natural disaster that qualified for being declared a disaster area, the powers that be lied about the magnitude of the earthquake to keep it under the disaster declaration limit.  Had to do with a huge tax break you get in those federal disaster areas.

Sorry, but I have no clue.

d.Diane Sanders - thanks for your question. Learning from the other member's responses - thanks, John Meussner.

FEMA is not the determining source. Appraiser is boots on ground. Some areas the water receded, some may still see rising water. condition of subject the day before closing is what matters. You are in my prayers. If you need help please ask. 

Don't know how long this takes but I would not hold my breath - I'd go long on this.

I would need to contact my trusted mortgage lenders for advice on this.

Please share some of your recovery experience in your blogs.

Wow, it is going to be an interesting period of time!

Hopefully the homes not affected will be allowed to close. It is nice to see the water going down, now comes the hard work. 

I'm sorry you're going through this and I wish I knew the answer to your question!

This is also going to be a short term economic disaster ! KW Cares is sending money to our 4,200 agents affected by this !

Good luck.

Makes sense to reappraise.