Thursday, June 03, 2010

Flood Insurance Impacting Closings

The National Flood Insurance program is again on hiatus effective June 1, 2010 until Congress approves funding.   As a result no new flood insurance policies will be written until further notice.  If you are under contract on property and your lender is requiring flood insurance in order to close on the home, your closing will need to be delayed.  If you under contract on short sale or bank foreclosure, it could be tricky if short seller lender or bank does not grant extension.   In foreclosures, there are financial penalities if you do not close on time.  Some Lenders will allow a copy of the application with a tentative effective date for closings. Down time may be anywhere from a few days to a few weeks.