The disaster visited by Hurricane Katrina was the largest in the recorded history of the United States. It was the costliest and the most deadly of all the hurricanes that visited the United States and was the sixth strongest of Atlantic hurricanes. Occurring in end August, during the Atlantic hurricane season, it completely devastated the city of New Orleans, Louisiana. Hurricane Katrina had its impact on the real estate market as well and has resulted in many New Orleans Homeowners Eager to Sell Their Flooding Homes.

The Catastrophic Effects 
Hurricane Katrina hit New Orleans late on August 29, 2005. More than 80% of the city was flooded in the next two days, with some areas under 20 feet of water. This was due to the failure of the levees and floodwalls protecting New Orleans. People were trapped in their flooded homes, and many roads in and out of the city were severely damaged. 

It was estimated that the city experienced winds of Category 1 or Category 2 strength. Many assumed it to be of Category 3 strength. Category 3 winds correspond to the highest category on the Beaufort scale, Beaufort 12 (Hurricane), and are very destructive winds with gusts of 170 - 225 km/h.

Ordeal of New Orleans?? Homeowners ?C To Sell or Not to Sell
One of the biggest dilemmas facing the homeowners in New Orleans, whose homes have been flooded, is whether to pick up the pieces of their ruined lives, or to move away. Many homeowners are placing advertisements, putting up their flooded homes for sale. Who knows whether there will be a market for such homes? The time will test the patience of New Orleans Homeowners Eager to Sell Their Flooding Homes.

With around 80% of the homes in New Orleans having sustained damage, this will require some rebuilding. This may seem like profiting from disaster, but shortages of housing will push the demand and prices of the homes that survived total disaster, northwards. At the same time, these homeowners have to go through the grueling process of fixing the damages. Such homeowners could sell now to real estate investors, at highly discounted prices, or first spend months dealing with their insurance adjusters, and then with the home improvement contractors. 

Many homeowners with flooded properties are selling to out-of-town speculators at two-thirds the pre-Katrina property prices. Most homeowners find the scenario quite scary. These homeowners are eager to sell their flooded homes. Why? Consider this scenario. The interiors could be a complete disaster. The upholstered sofa upturned and deposited on the desk. The washing machine ending up on the dryer, the fans, and the air conditioning equipment now a complete scrap. The after effects of the disaster the water has left behind, with mold on all and every visible surface. The walls are now the habitat for fungi. It is the same with the ceilings. So is the condition outside, and in thousands of homes around the once flourishing city. This is why many New Orleans Homeowners are eager to sell their flooding homes at throwaway prices. With such a high cost required for rebuilding their flood-damaged homes, it is no wonder that most homeowners are eager to sell their homes and relocate elsewhere. 

Flood Damaged Homes on Sale
A visit to the real estate websites will display a number of advertisements of homes for sale. Duplexes, triplexes, single unit homes, multi-unit apartment complexes, homes owned by individuals, the list is endless. The investors who are ready to buy the flood-damaged homes may have to deal with the mortgage lenders also. Most of the homes still have mortgage due on them.

There is an added catastrophe for those homeowners who did not carry flood insurance. They too are more than eager to sell their flooded homes at the earliest. There is a plan to help New Orleans homeowners rebuild their lives and properties. What about those who do not wish to rebuild their lives in New Orleans but sell their homes and move out? There is a need to offer homeowners who cannot, or do not wish to, rebuild in the same place the option to sell their homes and provide them with incentives to build or buy a new home in Orleans Parish.

There is an option available to homeowners who had their homes in areas that are no longer re-buildable to sell their homes voluntarily for an amount equal to the pre-Katrina market value minus the sum of FEMA and insurance proceeds. The condition is that the amount should not exceed $150,000. If these homeowners opt to rebuild in Orleans Parish, they will be eligible for a deferred mortgage of up to $30,000. This amount is not to exceed 20% of the value of the new home.

It is time for homeowners to consider all options.

Search and browse investment property in New Orleans and nationwide

 

Do you own real estate articles or stories and want to share with other investors? 
You have chance to win $100 Amazon Gift Certificates. We will give away 3 prizes for top authors each month!

Email your articles or stories to:  articles@buyincomeproperties.com

 

© Copyright 2001 - 2010 by BuyIncomeProperties.com               

 

 

Visit Real Estate Forums for every real estate investing topics!  Enter Here

    

Top of Page