What happens when property is so damaged, it's no longer suitable even for squatting? Can banks continue to pretend that their assets are performing when they lay in ruins? Who gets the insurance/govt relief money - bank or deadbeat "owner"?
Two good points.... someone is going to get it good up the rear. I believe a large chunk of these houses won't be covered by insurance, so who takes the loss... the owner or the bank??
Many are most likely underwater (both mortgage and real water) so I can see a lot of "strategic defaults"... a lot of the "squaters" just lost their housing...
It will be a HUGE economic hit to the businesses, banks and the population, so who will get stuck with the final bill???
Insured homeowners will NOT have to pay hurricane deductible because that has been decided by the governors and then some insurance commissioner somewhere. They say sandy did not make landfall at mote than 74 mph.
So heres the punchline...
If homeowner has a mortgage or heloc, then the bank has control over the insurance payout. Hardy har har. That's the way it was explained to me by wells fargo for a floruda gulf property.
So they banks get the booty for the delinquents. I would guess.