[StBernard] Demolition

[Westley Annis]

Westley,
Thanks for taking the time to address this question. It's very important to 
those of us who worked hard to pay our flood insurance premiums. But I still

have a question about number one; I now own this home, I used the proceeds 
from the flood insurance to pay the balance of the mortgage, therefore there

is no mortgage balance. Using your reasoning, I should recieve at least 60% 
of the pre Katrina price - boy I hope you're right!!! If this is correct I 
would actually have recieved a pay-off of 138% of my homes' value, if you 
add the amount recieved from the flood disbursement to the value recieved 
from the Baker Plan.

This sounds too good to be true!

Butch



>-----------------------------------------------------

>Butch, I'll answer the best I can, but realize I'm only guessing here.

>

>See responses below.

>

>Westley

>

>-----Original Message-----

>

>Westley or Craig,

>Help! I am hopelessly confused. I had planned on driving to the parish

>tommorrow and to sign a demolition form. However, I just got finished

>listening to Richard Baker on WWL radio. I am more confused now than ever. 

>I

>

>really need three questions answered;

>

>1. My flood insurance paid off the mortgage on my home and I was left with 

>a

>

>small amount of equity. The insurance value was about 78% of the fair 

>market

>

>value of my home. I now hold the title to a home with 10-30% structural

>damage and do not intend to rebuild. The home is in Meraux.

>I have not gutted the home and do not intend to do so. I have placed it on

>the market and have For Sale signs posted on the home. Richard Baker stated

>on the radio that the minimum offer on homes will be 60% of pre-Katrina

>value, will this apply to someone like myself, who has recieved a flood

>insurance settlement? Every time that I have heard this question asked of

>him, he doesn't answer the question, or maybe I ain't smart enough to

>understand the answer?

>

>Answer: The way I understand the process to work is this: PreKatrina Value

>minus Current Mortgage Balance equals Your Equity.  You should receive at

>least 60% of this value.

>

>2. I certainly want to do the right thing for the parish and any neighbors

>who do intend to rebuild in the area. My first thought was to sign the

>demolition form and let the parish demolish the structure. That wouldn't

>happen for awhile and if I got an offer on the property with the structure 

>I

>

>could stop the demolition. But if the Baker Plan does get through Congress 

>I

>

>suppose that it may be in my best interest to let the structure stand, it

>might be worth more?

>

>Answer: Since the Baker Plan will be buying based off of PreKatrina values,

>I don't think the structure being there or not will have any bearing on the

>monies you are offered.

>

>3. If the Baker plan passes and does benefit everyone whether they have

>insurance or not, doesn't it cause a problem with the expedited demolition

>that the parish seems to favor?

>

>Answer: Basically the same as number 2.  Actually, I think the Baker Plan

>would rather have the homes demolished.  This lets FEMA pay for that 

>portion

>of the cleanup, meaning the LRC would have more funds available to buy

>homes.  Plus I think it helps give a larger area for developers to have a

>blank slate to work with.

>

>