By Jim Droz
Many home sales in the Northeast have been put on hold following the aftereffects of Hurricane Irene, which sparked flooding and caused damage in about 11 states.
One lender based in Connecticut estimated that anywhere between 15 percent to 50 percent of his company’s pending mortgage applications will need re-inspection.
Buyers with pending home purchases and home owners with refinancing applications in FEMA-designated disaster areas could be impacted by the re-inspections. If severe damage is found, financial institutions might not provide loans to buyers on the property.
Andrew Wilson, a spokesman for Fannie Mae, said that it’s too early to tell how many purchase and refinancing applications will be impacted by Hurricane Irene. However, he said that home owners with Fannie Mae loans whose homes had flooding or other damage from the storm might qualify for a loan forbearance.