Re-consideration of value due to storm damage...

Had a short sale approved with Chase @ 220K and then we had a hail storm hit our area and the home suffered about 30K worth of storm damage. The home is vacant so State Farm will not pay the claim on the storm damage. We went back to Chase to see if they would accept a lower price because of the hail damage and they said we would have to wait another 90-days for the investor to consider a lower offer. Any suggestions on how to proceed and/or get Chase/Investor to accept a lower offer now? Any help or suggestions would appreciated. Thx-Te

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Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on May 17, 2011 at 9:11am

It would probably be easier to fight it out with State Farm.  What difference does it make if the house was vacant or not on the paying out of this claim?

 

 

Permalink Reply by Steve Early on May 17, 2011 at 11:25am

It probably depends on the insurance policy and the terms. We are currently about to close a short sale with hail damage as well. The insurance company did pay. So Kevin's strategy is right on - I'd have the customer review his/her policy and see if there are any clauses that mention payments if the house is vacant. I can see them not wanting to pay vandalism if the property is vacant, but storm damage is another thing. It would have happened whether they were in the house or not.

As to the 90 days, a BPO/valuations are good for 90 days and most investors will not re-evaluate the value of a property until the first BPO expires.

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