Ask a real estate professional: Why can’t I get flood insurance?

Ask a real estate professional: Why can’t I get flood insurance?

Q: My bank just informed me that my loan has been approved. But I can’t close because I don’t have flood insurance for the property, which happens to be in a flood zone. How can this be? Isn’t this something I can get later on? — Teresa

A: Current authorization for the National Flood Insurance Program expired at midnight on March 28, and the extension that was to be passed by the Senate did not get put to a vote before the session was adjourned. Due to this expiration, the issuance of flood policies has been suspended for at least two weeks. As a result, borrowers requiring flood insurance can either buy it from a private insurer or postpone the loan closing until NFIP can be obtained in an adequate amount (tentatively April 12). The Federal Emergency Management Agency says lenders may consider assignment of a policy in order to obtain coverage through the NFIP during the hiatus. The closing papers must show that the unearned premium on the existing policy is paid by the buyer, but my suggestion is to proceed with extreme caution before moving forward in this manner.

Hotel deep-six (The Deal Magazine)

Hotel deep-six (The Deal Magazine)

he Noble Organization, a hotel real estate fund, management and development group, should be perfectly situated in today’s distressed commercial property environment. The number of hotel-related defaults has exploded in the past year or so and now reaches $32.3 billion, according to real estate research firm Real Capital Analytics Inc., and “isn’t even at its peak,” says Noble founder and CEO Mitesh Shah.

Meanwhile, Shah’s group sits on more than two-thirds of its current $310 million private equity fund targeting distressed hotels. Noble operations teams have experience in everything from luxury to budget properties and feel comfortable in all sorts of geographies.

So when did Atlanta-based Noble last do a deal? May 2008. “It’s been a tough wait,” Shah acknowledges.

Charlotte County looks to buy distressed homes [South Florida]

Charlotte County looks to buy distressed homes [South Florida]

The housing crisis peaked in Charlotte County in 2008-2009, with foreclosure filings running at about 400 a month.

While the numbers are down so far this year, the problem of vacant homes remains for neighborhoods.

Now the county is trying to salvage some of those homes through the federal Neighborhood Stabilization Program. The program provides grants to communities hardest hit by foreclosures and abandoned homes. In January, the Florida Department of Community Affairs distributed $6.7 million to the county from a $91 million allocation for the state.

The goal is to create construction jobs and revitalize housing. The county is purchasing foreclosed properties to rehabilitate them and give them, free, to local nonprofit housing groups.

Florida locales dominate FHA default list

Florida locales dominate FHA default list

What the heck happened to the FHA’s loans in Florida?

The state dominates the list of troubled metro areas for Federal Housing Administration-insured mortgages. In fact, 16 of the top 25 locales with the highest default rates are in Florida, as of December, with tiny Punta Gorda on the Gulf Coast leading at 22.7%.

The poor performance of Florida’s FHA loans has helped drag the agency down to its lowest point in decades, raising concerns that taxpayers will have to bail it out. The agency is in the midst of overhauling its operations to shore up reserves, which have fallen well below the level required by Congress.

Much of the blame lies in Florida’s famous condo market, which collapsed during the housing bust. The controversial practice of seller-assisted downpayments is also contributing, as is the scarcity of jobs and the severe decline in home values.

Charlotte County looks to buy distressed homes

Charlotte County looks to buy distressed homes

The housing crisis peaked in Charlotte County in 2008-2009, with foreclosure filings running at about 400 a month.

While the numbers are down so far this year, the problem of vacant homes remains for neighborhoods.

Now the county is trying to salvage some of those homes through the federal Neighborhood Stabilization Program. The program provides grants to communities hardest hit by foreclosures and abandoned homes. In January, the Florida Department of Community Affairs distributed $6.7 million to the county from a $91 million allocation for the state.

The goal is to create construction jobs and revitalize housing. The county is purchasing foreclosed properties to rehabilitate them and give them, free, to local nonprofit housing groups.

Many condo bills are similar

Many condo bills are similar – Miami-Dade

More than five dozen have been filed during the legislative session, as Florida grapples with its real estate crisis. But boil down the language of lawmakers’ proposals to help cash-strapped condo dwellers, and there are only a handful of ideas:

Make it easier for investors to buy multiple units in empty buildings. Delay costly state-mandated upgrades. Discover ways to punish owners who don’t pay skyrocketing association dues.

“We’re all rowing in the same boat,” said Sen. Eleanor Sobel, a Democrat from Hollywood, “hoping that one of us will finally reach land.’

‘