Tuesday, September 10, 2013

REBUILDING AFFORDABLE HOUSING AFTER SANDY

Consulting at yesterday's Sandy/Foreclosure clinic, I was faced with this issue - can one rebuild with insurance funds, SBA loans, etc. and make the housing affordable.

See this article:

NY WORLD - Left high and dry by insurers, homeowners reluctantly borrow Sandy rebuilding funds

So assuming a family earning $100,000 a year, with a $200,000 regular mortgage, requiring a $250,000 loan SBA loan to rebuild in addition to flood insurance funds received - with Nassau County taxes, flood insurance costs, etc. calculated and assuming no other debt -  that would put the family into a house with $450,000 debt and unaffordable housing.

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