FEMA REPAYMENT PROCESS

In yesterday's Newsday, the front page story centered on FEMA's claw back attempts on Sandy victims who received overpayments.

We all know that in Louisiana, etc. was at the forefront of FEMA issues due to Hurricane Katrina and a Louisiana legal group put together a pamphlet "FEMA Wants Money Back? Self-Help Guide to the Debt Repayment Process":

https://www.google.com/search?q=how+to+appeal+FEMA+claim+for+overpayment&ie=utf-8&oe=utf-8

SANDY CLAIMS REVIEW

The Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP) has begun a review of claims filed by policyholders affected by Hurricane Sandy. The review is part of a broad process to reform NFIP claims and appeals procedures.

For more information, see https://www.fema.gov/hurricane-sandy-national-flood-insurance-program-claims-review

MORE RE: SUPERSTORM SAND - NYS AG PROBE INTO INSURANCE DENIALS

As reported today in Newsday:

https://www.newsday.com/business/fema-expands-probe-of-sandy-insurance-reviews-to-li-engineering-firm-1.9724887

MORE ON SANDY AND ENGINEERING REPORTS

Reported that the plaintiff in the recent engineering report case and another Sandy victim recently filed a class action lawsuit against an insurance company and several associates, claiming they schemed to manipulate a Federal Emergency Management Agency (FEMA) program for profit. Same counsel team from LI case.

See http://www.washingtonexaminer.com/rico-class-action-alleges-post-sandy-scheme-to-manipulate-fema-program/article/feed/2175233

FEMA SEEKING CERTAIN SANDY CLAIMS TO BE REPAID

http://news.msn.com/us/fema-wants-at-least-dollar58m-in-sandy-aid-repaid#tscptme)

MORE RE: SUPERSTORM SANDY

I pass along this news item regarding homeowners with rejected FEMA claims due to "earth movement" for relief under NY Rising:

NEWSDAY - Officials: Sandy victims with rejected insurance should apply to state

But note the caveat if you have already applied for an SBA loan:

NEWSDAY - SBA loans keep Sandy recipients from NY Rising aid

SUPERSTORM SANDY STATUTE OF LIMITATIONS

Well it appears that there is an issue as to whether FEMA's grant of 6 months additional time to file paperwork also extended the statute of limitations.

See this press release from Senator Schumer:

SCHUMER: LITTLE KNOWN DEADLINE FOR THOUSANDS OF SANDY VICTIMS TO HOLD ACCOUNTABLE INSURANCE COMPANIES FOR SHORT-CHANGING THEM IS FAST APPROACHING; MANY FAMILIES DON’T EVEN KNOW THEY MAY NEED TO TAKE LEGAL ACTION, BUT MAY SOON LOSE THAT RIGHT ANYWAY– SCHUMER CALLS FOR FEMA TO EXTEND DEADLINE

MORE RE: SUPERSTORM SANDY

A compliment to Touro Law Center for their excellent insurance checklist and other information, etc. re: Sandy claims. It was reported today in Newsday and can be found at this link:

http://www.tourolaw.edu/TLCHEART/

RECENT ISSUES RE: SUPERSTORM SANDY

For those counseling clients, be aware of these developments:

1. New York will use part of its share of billions of dollars in federal Superstorm Sandy aid to “fully compensate” storm victims who had flood insurance claims denied because of a hard-to-understand rule barring payments for damage caused by earth movement during a flood, New York Gov. Andrew Cuomo announced Saturday. Details have not yet been released.

2. The STOP FEMA NOW protest - The Biggert-Waters Flood Insurance Reform Act of 2012 stipulates that if homeowners don't raise their houses, they face much higher flood insurance premiums - to $20,000 plus.

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.

SANDY AND INSURANCE CHECKS

In todays Newsday, there is an article about how "a Cuomo administration official admitted Thursday the state "did not foresee" the problem of banks holding up insurance checks to Sandy victims in the immediate aftermath of last fall's superstorm."

If you have a mortgage, and your home has suffered severe damage or been destroyed, some or all of the payment checks from your insurance company will be made payable jointly to BOTH you and your mortgage company. This happens because your lender has a financial interest in the property that your insurer will honor/protect.

Until your mortgage company releases its claim on some or all of the funds, they will sit in your mortgage company’s account. This means that before you can begin to rebuild, you must first understand the process of how to get your mortgage lender to let go of your insurance proceeds.