Sandy & Mortgage Refinancing -- What Do I Do?

 

A:

Many mortgage refinances are likely to have been blown apart by Superstorm Sandy. If you were in the middle of a refinance, you will face delays. We closed, for the first time ever, for more than a day due to weather. We were off-line for ten days, and are so glad to be back!

If you applied and were approved for a refinance but Sandy hit while you were waiting to close, the lender  will want to re-inspect the house. Fannie and Freddie give lenders the option of not inspecting homes for storm damage, but in most cases lenders will hire someone to look at the house to see if there's any damage.

If the home was damaged by the storm, it has to be repaired before you can close on the refi. Lenders are allowed to make an exception allowing the loan to close if the damage isn't major, if insurance covers it and if enough money is set aside to pay for repairs.

There is an exception to the inspection policy: If you're refinancing a Fannie- or Freddie-backed loan under the Home Affordable Refinance Program, the lender doesn't have to inspect or reappraise the property if it had been inspected or appraised before the storm.

If you're employed, the lender is required to verify within 10 business days of closing that you still have a job. If you're a business owner, the lender is required to verify within 30 days of loan closing that the business is still running. But don't expect the lender to rely on pre-storm employment or business verification. Most lenders will make a verification call within a few days of the closing date.


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Mega Title, LLC

721 Route 34, Suite 3
Matawan, NJ 07747
Phone: 732-242-9835
Toll Free: 877-550-MEGA
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Testimonials

  • Samah and her team at Mega Title were efficient and professional in
    handling our refinance closing. I had used them in a prior refinance
    and was so impressed with the attention to detail that I came back
    this time again. They are accomodating to your schedule, meet the
    deadlines so they don't waste your time and most of all treat you as
    if you are their most important customer at all times. I couldn't ask
    for better service - they took care of everything. Just had to show
    up and sign.
  • As a real estate attorney, I have dealt with numerous title companies.
  • I recently refinanced my home. Mega Title really made my life much easier.
  • I really appreciated the excellent service and caring attitude during my refinance.
  • I can't express how impressed I am with your customer service!

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