I have no idea how this insurance will work, or how fast it will be processed. I sincerely hope these people who have been through this heartache don't have to jump through government red tape forever to get what they deserve, but My bet is that it will be slow. Your buyers don't know how much or when they will get their settlement, right? A contract has to have a beginning and ending, or closing date. If this is handled like most insurance settlements, the proceeds will probably be made payable to the owners and the mortgage holder. The owners will get what's left over after the mortgage is paid. From your post, it sounds like your buyers don't know how much that will be. I would send your buyers first to a lender to get qualified. When I am working with buyers who are expecting a settlement of some sort and don't know how much it will be and don't know when it will be, I usually wait until the money is in the bank.
A HUD 203K loan is a FHA loan, which is a loan that is insured by HUD. Typically they have a lower down payment and more liberal debt/income ratios. A FHA loan, however usually involves repairs that need to be made to the home, so you have to keep that in mind when writing the contract,who is going to pay for repairs, and how much. The lender can tell you about that.
Good luck.

expanding on 203k loans...these loans are specifically for fixer-uppers. The borrower is given x-amount of money to buy and fix up. They must occupy the property.

On a 203K loan the borrower is not "given" the fix-up money. The repair money is borrowed, and has to be paid back. Repairs can be done after closing, and funds are escrowed. A 203b loan is a regular FHA loan, and any needed repairs have to be done before closing.

...and in the Gulf Coast Forum. Since this forum was started primarily to deal with issues surrounding the Hurricane Katrina/Hurricane Rita events, it has remained rather dormant lately--except for the posts revolving around last November's NAR Conference held in New Orleans. When it was started, it did serve a good purpose--providing a place for posters to express their sorrow (and hope) surrounding these two awful storms. Frankly, I certainly wasn't emotionally prepared for the devestation these two back-to-back hurricanes brought to my neighbors...few were, in fact.

Just wanted to put a little life back into our forum by reminding everyone that spring is just around the corner, and we know what that will be followed by...hurricane season. So let's get a jump start now on scanning those precious family photos and storing them on the internet, as well as any photos we will need for insurance purposes should anything happen. We have plenty of time to buy hurricane supplies, but it takes a lot of time to organize your photos. If you lose everything in a storm some day, you will one day need those photos to remember your kid's birthday parties, your favorite pot plant, your husband's baseball trophy, or your wife's first Thanksgiving dinner...and if you have stored them safely, you will have them to show any future family members...where you lived and what your life was like before the storm. I know most of us won't have that awful experience, but we will all sleep better if we know our photos are safe...from fire, flood, theft...as well as hurricanes.

There are a lot of professionally prepared hurricane preparation lists out there...grocery stores, insurance offices, television stations. Most of us have several stuck in file drawers around the house. If you don't, pick up one early in the season and go over everything with your family. I hope it will be years before we have another serious post on this forum, but this post is just a reminder to us all that it could happen...in fact, it did happen. Also, it's a reminder that I have not deserted the forum.

If anyone thinks it would be a good idea to talk on here about Gulf Coast real estate issues not related to hurricanes, that's fine, too. Just start posting. Most, however, seem to prefer the larger forums which gives us an opportunity to learn from a larger group of people.

That's all for now.

Darlene

Those of us who live on the Gulf Coast have come to understand that these hurricanes are going to be coming much more frequently than they did in the past. It's going to be serious business every hurricane season from now on.

The last info from all my various hurricane sites seems to put Ernesto just outside New Orleans later in the week as a Class III hurricane IF IT SURVIVES THE SHEAR. If the shear only slows it, it may adjust it's route and threaten someone else. I can't imagine what will happen to New Orleans, especially all the homes in the framing stage, if a Class III hurricane strikes them.

Some say don't worry until it happens. That is not even practical when you reside on the Gulf Coast. The emotional roller coaster that these hurricanes put people through will eventually start impacting families to the point of being a primary reason for relocation for many from the Gulf Coast area. Our water sports, recreational activities, and warm winters will still draw new people to this region and life will still go on. But, sadly, many will always be looking out at the Gulf wondering when the next surprise will come.

My prayers go out to the people in the path of Ernesto. We won't have to wait much longer to see if it will weaken from the shearing.

It appears the Texas Gulf Coast as well as Louisiana have must to be thankful for. It's a bitter victory because of the severe damage that this storm is going to leave behind after it passes over the islands and hits what is now predicted to be the Florida Keys. After that, of course, is anyone's guess. So for my end of the country, life goes on.

Hubby just visited and fell in love with Biloxi (and its casinos!). I'm an investor as well as an agent in the Carolinas, so we're considering the possibility of buying something down there onthe Gulf Coast that we could visit as well as rent out. On Carolinas beaches that's pretty straightforward -- buy unit, get a property manager, make money. Has the vacation rental market returned in Biloxi and surrounding areas? Is it mostly weekly or monthly? Summer or snowbirds?

He was also surprised by the amount of ground-level construction. In the Carolinas, almost everything oceanfront is up on stilts. Even the hotels use ground level for parking, so any storm surges go through. Obviously in a Katrina-style storm, that makes little difference, but a coast brush-by can still bring lots of water onshore. Hurricanes don't scare us overly -- my first memory is of evacuating for one -- but we respect them and their power and believe in taking all the proper precautions! Anyone know if there's a reason behind this down-to-earth construction?

Anything we should be especially aware of as we start exploring the area for a potential purchase?

Carolina Songbird

Carolina, I know just the person you need to talk to. But first, two things: I love the Carolinas and spent several vacations in New Bern, near the Brice & Trent rivers, fishing off a pier. Secondly, my apologies for not responding sooner to your post. I am in the process of moving and either I did not get notification of the post or somehow overlooked it. I'll make sure neither happens again. Anyway, Gulf Coast agents prefer to hang in the other forums where agents from other states post because they get a lot more input there. We kinda, sorta use this forum for hurricane related issues, so as not to clutter the other forums when we have a scare which only impacts the Gulf Coast. Of course, Katrina and Rita impacted the entire country because of their severity.

The agent you need to talk to posts under "MS Gulf Coast". If you can't find her on here, let me know and I'll locate her for you. Many of her posts are in this thread. Also, if you have not already done so, you can go to the Agents and Brokers forum or any other forum you think may suit your needs, then ask for any Biloxi area agents to respond to your questions. But before you do, you can finish reading threads in this Forum, since a lot of area agents did post here. Any of them will be happy to help you. But the search forum, using "Biloxi" or similar search words, may produce some good info about the area--and those posts will be the agents who work in that area, usually.

My favorite memory of wonderful Biloxi was in the late 70's, when I spent some vacation time there. Pasadena (where I live) had a restaurant called Lum's, if I remember correctly. They served hot dogs steamed in beer. I wasn't a beer drinker, but those hot dogs was fantastic. It closed, and I thought they went out of business until I went to Biloxi and found one of the restaurants. I ate a lot of hot dogs during that vacation, but saved a lot of money. It's a wonderful area and it will take a lot more than one hurricane to crush the spirit of the people who live around there.

Thanks for the post, and again--sorry that it took so long to find your post and inform you that this forum is mostly inactive with the exception of hurricane info.

It's great that people like you are interested in helping restore, little by little, a part of our country that was taken from us in less than 10 hours. Hope you make a nice bit of money in your investing.

Excuse any typos. I'm knee deep in wrapping paper and have been at it all day.

Yikes, I should practice what I preach. I just checked your old posts and saw you have been posting in those forums I recommended for a while. Sorry--I can see where you thought this forum was the best for your question, but by now you are an ole' pro. Anyway, Gulf Winds is also a very active member, but can't remember what part of the Gulf.

BTW, if you ever want to invest in Galveston, let me know. I'll check a few things out for you and connect you with an agent down there. My broker is selling his beach house in Tiki Island, there are lots of other places on the west beach, and some very beautiful older homes just waiting for someone to restore them. Lots of opportunity down there. Galveston has a brand new bridge from the mainland and a very bright future.

I'll probably catch you on one of the other forums.

Darlene & CarolinaSongbird:

I'm over in Alabama (Gulf Shores, Orange Beach) along the Gulf of Mexico. We're located in between Mobile, AL & Pensacola, FL (about 45 minutes to either city).

I'm only 100 miles away from Biloxi & visit the casinos frequently. The Beau Rivage gets plently of my $$$! As a matter of fact, I just got a birthday card from them with a free night stay hotel voucher.

Our fellow forum member MS Gulf Coast, I believe, is located in Hattiesburg (just north of Biloxi) but she works in Biloxi as well.

As far as the vacation rental market, primarily the casinos are filling that void until other properties are rebuilt or repaired. I know that our rental market took a serious dive after Katrina damage. Many vacationers had no choice here and as a result, they discovered new places to stay. It's taken over a year to begin stabilizing.

The long-term rental market is VERY strong in Biloxi, Gulfport and surrounding areas. You can realize much higher than average rates due to supply and demand. Many are still renting until their insurance pays or are construction workers needing a place to live while they work in the area.

I recently purchased my first box of space bags - original brand - and noticed the word "Waterproof" on the box. Well, it is probably asking too much for them to be totally waterproof, but they would be some help. I do know the big bags will hold a printer, a computer, laptop, scanner, or a whole lot of long cables. Faced with a situation like we had here in Houston with Rita bearing down on us, not knowing she would turn at the last minite, I would have been under a lot less stress had I had some of these bags. In that situation, a window blowing out or a major roof failure would be enough to take out a lot of electronic equipment. I would probably not trust just one bag...I think anyone's computer is worth a double bag, but they are very expensive. In a situation like Katrina, I doubt anyone would expect to see a computer survive if it had been sitting in water for any length of time. Water has a way of finding a way in. My best idea so far to have a quick and easy way to put things away if a storm is coming is the plastic trash cans with lids, preferably with 2" lips. I will put a liner in the trash can, put in the stuff, put on the lid, then cover the entire can with another trash liner, then wrap duct tape around the middle of the can just to help hold the liner that is covering it. Best part--I then can roll it into whatever room I need to, whatever closet I need to. After the storm, I can roll the trash can into the room the stuff goes in and unload it.

I know some will think this is a bit drastic but each person's fear level is different. I'm terrified of these things--way past a healthy respect. I've now been in three (and worked civic defense during Alicia in 1982) and it is difficult to know ahead of time just how much damage the wind will do. Not far from my home a huge oak tree was uprooted during Rita and fell over on a house. This oak had been there for years and just crushed the end of the house. And we were just on the skirts of Rita...barely hurricane force winds if that.

It's hard for anyone to understand if they haven't watched a weather condition coming at them--hurricane, tornado, water - either rushing or rising, earthquake, whatever--and knowing there is not a thing you can do about it--you are out of time and you better be ready. So scan your family photos and photos of your possessions for insurance claims, put up everything you have the time, money, and energy to protect, and follow the storm on the radio or TV for instructions on how to take care of yourself.

Hey Darlene!

I use the bags that are made for kayakers & white water rafting called "dry bags". They have a zip lock type closure and then you roll it over and snap it. I first started using them for wet scuba diving equipment in the car, but I have a few extra for just what you're talking about. Now, if you want the ultimate in protection and dryness, get a pelican box! Those things are military grade and can withstand a lot of force from impact.

Drybags: http://seallinegear.com/

Pelican: http://pelican.com/case_category.php?CaseSize=%&New=%

Pelican Bags - now I won't get anything done because I'll be over there checking out those bags and the sizes and colors and styles. So people carry whatever they need to survive in those suitcases, I guess. Those are the ones in the movies when disaster is everywhere and someone opens the suitcase and pulls out the phone, the gun, or whatever he needs? I knew they would be good when I saw the word "O-ring"...a whole lot better than the zip lock seal. Now I'll check out the Drybags.

Before Rita, our Mayor (actually, Houston's mayor) went on TV and bragged that Houston would not make the same mistakes as New Orleans if Rita came because we were ready for the evacuttion...it was a major relief to many here to know we had a workable evacuation plan. Unfortunately, it was a nightmare...cars out of gas and broken down, no promised gas along the route, people out of water and food, even had a fire on a senior citizen evacuation bus and almost everyone died. Those people were stuck on that freeway for two days...then Houston would not let them come back into certain areas...I can understand that but we would think that would have ruined some political careers. We made our own Katrina just because of the arragance of our elected officials. The people were not prepared financially, emotionally, or any other way for the problems that storm caused, and it never even hit us...it was more like it skirted us.

As long as we are looking at survival gear - I found this small drum that you put a few clothes in - maybe 3 pieces - and fill with water and just a very small amount of soap, then crank it around like an ice cream container, then drain it and refill it again to rinse a few times. Looked pretty easy to operate and the seal was similar to a butter bowl. Very elementary but if you had water, you could wash clothes in an emergency. I guess after the last rinse, you would keep cranking to get as much water out as possible, so you could call that a spin rinse. Anyway, $50 to fix what could be a major problem. Would not have helped with Katrina, since they had no fresh water, but would help if you are living in your station wagon after your roof blows off the house.

Thanks for the hints on those great bags. Without our office equipment, we are pretty much out of the real estate business--at least temporarily...as I was a few days back when my computer went down. Norton got me back up, but nothing can get a computer back up if it gets water.

Hey Darlene..

Buy the clothes washer and then drink the left over waste water! This thing filters out almost everything! They last for a year & are cheap too!!! I have 4 of them just in case.

http://www.lifestraw.com/en/high/maincont2.asp

Something like that might really make people very uneasy just thinking about it...until they are in a desperate situation. Living among the chemical plants and on the Gulf Coast - we always have that survival instinct in the backs of our minds.

It looks so simple...but think how much better off those kids are to have those things. Had no clue anything like that existed. They probably wanted to have their picture taken using them. I'm going to read up on them tomorrow.

I have MCS, one of the environmental illnesses, specifically VOC's and any fragranced products. I wouldn't go in a shelter unless I knew it was a life-death situation. I would just have to stand outside and hope a piece of sheet metal didn't have my name on it. LOL. After 15 years of adjusting to it, it is now just a minor inconvenience because I practically live outside, which isn't that much better, I suppose. But when I saw all those people on those evacuation buses and stuffed in those shelters...Yikes, I knew that would be major trouble if I were in that situation. Anyway, point is...that is what put me onto the survival thing so strongly. Given the choice of NO WATER or the lifestraw...I am pretty sure I would be using the straw, drinking what was available and being happy to have them.

Those are a great idea. As my father used to say, "Thanks - What else ya got?"