[StBernard] Purchasing a home,... no insurance??

[Westley Annis]

CM,

You are definitely going to have a problem.  As a real estate appraiser, I
was contacted last week by a bank in Dallas asking me to appraise a
(damaged) home in Chalmette someone was trying to buy with a loan.  I asked
the loan officer "and what recent comparable sales in that area do you want
me to use?"  You see, there are none.

As I understand, there have been some, a few, home owners who have sold
their property (to someone), but there's no detailed data on the property
being sold, its accurated condition, etc.  Besides, as an appraiser I cannot
rely on the sales price as being indicative of the true market value.  In
other words, a lot of people are so stressed out they are selling their
properties for next to nothing just to be rid of the problem - and
heartache.  Thus, I cannot use the sale as a comp since it fails to be what
we call in the profession an "arms length transaction."

Needless to say, after explaining all this to the loan officer in Dallas she
promptly killed the loan - and how could you blame her.  After all, what
bank is going to stake its money in an area completey destroyed by natural
disaster and no one knows when any kind of "normal" real estate market (and
values) will return - if ever in our lifetime.  There's just to much
uncertainty in the future - and banks don't make decisions to loan money
based on uncertainties.

You're best bet is going to a local bank - but I wouldn't hold my breath on
that either.  Maybe you might have some luck with a federal agency like HUD
or the SBA.

Sorry, I'm not trying to be grim here on Christmas Eve or give you bad news,
but that's the reality of the situation and that's how lenders think.

Best of luck to you,

John Scurich