[StBernard] LRA Housing Formula

[Westley Annis]

Denise,

The rise in property values is one of the details that still has to be
worked out.  Under my calculations, you would get a grant for $20,000 and a
loan up to $130,000.

Since you had to pay $90,000 to the mortgage company, that leaves you with
$30,000 from insurance proceeds.  

Rather than looking at actual loan amount, they may be able to take your
actual monthly payment pre-Katrina into account.  If you were paying $1000
month with a 6-8% interest loan, you afford to borrow a larger amount at a
2-3% interest loan and still keep your monthly payment at or below $1000.
That would be one way to allow for the difference in interest rates.

Westley

-----Original Message-----


All knowing Westley,
Hopefully you know a little about this, i looked at the formula that you
have published on the web site, do you know if the LRA will take into
consideration what insurance proceeds were required to pay off the mortgage?
(ex: Insurance 120,000, home pre-katrina value= 140,000; mortgage = 90,000;
actual insurance payout: 30000; cost of today's home prices: astronomical).
Any input on this is greatly appreciated.
 
Thanks,
Denise