Hi - my closing was just canceled. I was told FEMA has declared NY County a disaster zone and as such the mortgage company now requires a building inspection to ensure there is no damage from the hurricane. The inspectors are being overwhelmed with requests (was automatically done for every planned closing) and mortgage company doesn't even know if inspectors are able to work with the power and transportation outages.

Unfortunately I am in breach of my contract now as I was unable to give 5 days notice to change my closing date. Am also days away from being homeless as had given notice on my current apartment.

Anyone have any insight into the FEMA situation and how fast that can be resolved or have any suggestions on how to get around the breach of contract caused by a natural disaster? Wish there was natural disaster insurance on contracts!!!

Its crazy and I truly feel for all the people suffering from the storm but my apartment is in an area of manhattan that never lost power, wasn't flooded at all and honestly barely had more than a terrible storm experience - definitely not anything memorable other than learning that our fellow NYers and NE Coasters had a much worse experience. I kinda feel like I am a victim of the FEMA rules...

I am really interested in this since I was supposed to close on a refinance today. Closing was postponed since lawyer's office was downtown-no power, but I wonder if I'm afftected too. My apt is in Carnegi Hill-no flooding, power outage, etc. Any real estate lawyers care to weigh in ?

What does you lawyer say?

There must be some "act of God" clause in your contract that prevents you from being in breach if there is such a happening.

There is certainly a provision in the boilerplate real estate contract that most lawyers use that covers the scenario of an adjournment of closing. I am not an attorney so I cannot provide legal advice, but you might want to discuss this with your lawyer as it's probably not as bad as you think.

Also, it's not just FEMA ; I am finding that a lot of building managing agents are in the downtown zone, without power. They probably wouldn't be able to deal with a closing even if if FEMA hadn't thrown you.

ali r.
DG Neary Realty

Have been hearing that all closings with mortgages post hurricane that had their inspections prior to the hurricane need to be reinspected. I guess this happens everywhere once it's considered a disaster zone. I actually read that a refi that closed was notified the day after that there was an issue and needed an inspection. Mym - I would ask your lender as I had been chatting with mine continuously with the closing still on until just before - I am using chase and they claimed they weren't notified earlier (even though ny county was considered a disaster zone days earlier. It was hard to get an inspection scheduled!

Front porch - My laywer's the one who told me that the adjournment needed 5 days notice - its a sponsor unit so have been talking to sales office too as there were outstanding non disaster related repairs too because of the storm. Will update once I hear back. Here's hoping!!

Anyone know if Fannie Mae also needs inspection report?!? My building preapproval expired yesterday (they wouldn't extend for storm) and I know need reapproval too in order to close!

I think FEMA should re evaluate how the classify disaster zones! Staten island didn't make the list initially but midtown manhattan did? Crazy!!!

These are the inherent problems with not having local banks and mortgage brokers be the ones who are stuck with the mortgages. Someone in central office 500 miles away makes the decisions. Probably didn't put Staten Island on the list because they hadn't heard of it until it was on the news.

If they're building amphlacars, I'm buying!