Mother Nature Happens…

…and she doesn’t ask us if it’s convenient or if we’re in the middle of a mortgage transaction, for a natural disaster to strike, such as the current flooding in Western Washington.  When significant natural events occur, it may impact your mortgage transaction.   

Most commonly, the lender will require the appraiser to do a re-inspection (442) of the property for any transactions that are not funded prior to the event.  Even if your home uphill a mile from a flooded river, if you’re in a region (such as a zip code) that’s flooded, where an earthquake, wild fire or other has happened, be prepared for your transaction to be delayed.   The appraiser is typically required to verify:

  • The property is free from damage.
  • The disaster had no impact on the value or marketability of the property. 
  • Include an updated photo of the home.

If the appraiser determines that the property has suffered from the disaster, repairs will be required with a follow up inspection (442) from the appraiser.   All re-inspections from the appraisal are submitted to the underwriter for (hopefully) approval.  It is possible that the underwriter may add additional conditions after the review.   I have found 442’s to cost around $150 (per inspection). 

If the appraisal has not yet been completed during a transaction, the appraiser will most likely need to address the disaster and whether or not it has impacted the value of the home. 

It’s up to the lender (and can vary from lender to lender) on whether or not they will call for reinspections when a natural disaster happens.