Record Snows &
Oklahoma Declared A Disaster Area
(Closings likely affected.)

On February 2nd, the President declared Oklahoma a federally-designated disaster area, allowing for federal disaster aid to our state to supplement State and local resources due to a severe winter storm beginning on January 31 and continuing. More snow coming for 2/9/2011 so this could be extended.

As such, banks, lenders and investors will require that all appraisals address the disaster and what affect, if any, it had on the subject property. If you are under contract and waiting to close this is likely to affect your closing. Here’s what to watch out for:

If your appraisal has already been done prior to 2/2/11, it must be re-inspected by the appraiser, and the following verbiage added to the original appraisal or put into an addendum, along with an external photo of the property:

“Having reviewed the original appraisal and personally inspected the property at [subject property address] and surrounding neighborhood on [date], I certify that, to the best of my knowledge, the inspection revealed no indication of moderate to significant physical damage to the property or neighborhood, and no needed repairs to the site or improvements other than those noted in the original appraisal.”

If there was damage it will need to be repaired before the closing.

For all new appraisals being done on or after 2/2/2011, the appraisal must include written certification by the appraiser that “the property is free from damage and the disaster has had no affect on value or marketability.” Photos are provided of interior, exterior and the neighborhood.

The re-inspections should take place as close to the closing date as possible

Should you have any questions, let me know.

Brett Brough
Brett@BrettBrough.com
Licensed Loan Officer
NMLS # 213001
Cityscape Home Mortgage
NMLS # 200326
918-271-0062
http://www.brettbrough.com