Important info regarding flood insurance
After the National Association of Realtors released the “Get Flood Insurance Now- It Expires Thursday” newsletter on Feb. 2, 2018, more information has come to light. There has been a 6-week extension to get flood insurance. So, for those of you who may have missed the original message, it is very important that you handle the flood insurance issue now before it causes a problem.
Here are some clips from the original message:
“The industry is preparing for another possible government shutdown Thursday, Feb. 8, at midnight, and since an extension of flood insurance is tied with the same bill in Congress, the ability to secure new flood insurance policies could expire at the same time.
Most home sales should be minimally affected because applications for mortgages backed by Fannie Mae, Freddie Mac the FHA and other agencies can generally continue to be processed. But closings could still be delayed because of the agencies that verify mortgage information for lenders such as the IRS and Social Security Administration- won’t be at full staff in a government shutdown. As a result, lenders could have to wait longer to get routine requests processed.
For households buying a newly constructed home in a flood area, the transaction could be delayed until the government reopens if they don’t secure flood insurance before Thursday or get it from a private lender. Existing homes that already have flood insurance probably won’t be affected.”