Flood Insurance Reform Act

I was visiting family in Tampa and the news stations were reporting on the Oct. 1 start date of a key provision of the 2012 Biggert-Waters Flood Insurance Reform Act, a new law that phases out subsidies on older properties in flood zones. The news reported that homeowners will see their rates rise 25 percent upon renewal until they decide to sell their homes, then the new buyers will have to pay the full cost of that insurance as much as 3,000 percent more than current rate.

Has this stalled home sales in Tampa and throughout Florida? What is your take on this and will this impact you bottom line?

Insurance companies are really hurting home ownership completely. I have a paid off home and my total insurance costs for health and the home are straight up killing me :frowning:

Once the sticker shock fades it will become a necessary expense for living near the beach, those who can afford it will absorb the cost, those who can’t will relocate.

iT STILL SURELY sucks. I HOPE ANYONE WHO MAKES A LIVING SETTING INSURANCE PRICES ROTS IN HELL.

Between the Obama Insurance plan, your state flood insurance issues, gov shut down, and holiday season approaching to name a few, I suspect the housing market has cooled or will throughout the country. But hey you guys still have warm weather, sunshine and working in shorts. Here in Michigan it jacket time again for another 7 months… and we are approaching winter swim season :stuck_out_tongue:

Michigan Winter Sports.jpg

And yet there are vendor shills on this message board touting home inspectors to piss away their hard earned money on expensive, unproven technology, go figure.

Embrace nonconformity!

The warm weather truly sucks. I would rather NOT be drenched in sweat when I go to my first inspection for the day. 2 years ago it never really got cool, last year I broke my heal and could not work during the nice time. We will see what life has in store for me this winter.

It will even out. The affected properties will either become cash deals, drop in value to where they can be affordable by those getting financing, or become bulldozer fodder to be rebuilt up off the floodplain like so many other homes before them.

That is and has been part of the plan for quite some time now.

And, if you think this is bad, wait until the “shadow inventory” floods the market. :wink:

So, are your predicting another price correction?

I don’t think correction is the proper word. If you follow the foreclosure world, as I do, in fact I may be purchasing a foreclosed home next month, the latest effort by the banks friends, the legislators, HB 87, has backfired. Everyone thought it would lead to quicker, albeit illegal, foreclosures. Turns out, none of the banks have the proper paperwork and the rate of foreclosure filing has dropped.

At some point, the banks are going to have to file the cases, and when they do, they better hope that a lot of people walk away and do not fight for their homes.

With that all being said, I am seeing multiple offers and above asking price on practically all the houses I inspect.

It is because inventory is being held back to cause a shortage, which artificially inflates the value. Then, when the market is flooded with all of the inventory, the “falling knife” effect will take place.

Almost on cue: http://www.businessinsider.com/us-cities-with-most-foreclosures-in-q3-2013-10?utm_source=hearst&utm_medium=referral&utm_content=allverticals#

I won’t even get into all of the title problems…

I believe Eric is possibly right, there is a ton of shadow inventory that is just sitting there. I have three homes on my street alone that have been foreclosed and vacant now for over 3 years, and I know of a bunch more all around town here locally that I pass in my travels everyday.