Hurricane Sandy May Cause Closing Delays in Philadelphia

If Hurricane Sandy results in a Federal Disaster Declaration in the county where your customer is under contract to buy or sell a home, and that transaction requires the buyer to obtain a mortgage please read this. 

If the appraiser has already completed the inspection, under Fannie Mae, Freddie Mac and Government Agency (FHA, etc.) rules, the appraiser must return to the house, re-inspect it and confirm that there is no storm damage. This must be done prior closing. If you have a closing scheduled for the days immediately following the storm, and there is a Federal Disaster Declaration in the County, there could be mortgage related delays while appraisers get out doing the re-inspections. To reduce closing stress, inform your buyers and sellers of this rule and ask them to prepare to be flexible regarding the closing date. If the Hurricane Irene experience of last year is a guide, delays were seldom more than two days. 

Keep in mind that the appraiser will charge the buyer for the return trip. If you have an appraisal inspection scheduled for the days preceding the arrival of the storm, postpone them until after the storm passes. Any appraisals with a site visit date after the passage of the storm will not require a re-inspection, saving your buyer $75 to $150. 

Source:  Kelly Nyikita, CB Home Loans