We had three earthquakes in three consecutive days in Northern California last week. The bigger one, a 6.5 magnitude in Humboldt County, caused significant damage. When natural disasters such as this occur, lenders will institute a “Disaster Area” policy. If you’re currently in process on your loan, whether a purchase or refinance, they will require that the property secured by the loan gets reinspected by the appraiser and the damage is addressed. For some, this may turn into a deal-killer, even if you’re just a day away from closing escrow.
Of course, there isn’t anything that anyone can do about the reality of natural disasters, but keep in mind that financing your home isn’t a done deal until it goes on record.
And to those of you that were affected by the severity of the earthquake, here and in Haiti, my thoughts are with you.
