sticky situation. ADVICE NEEDED

[Mylan J.]

1. Fix & hod property has a lease signed with tenants to move in 3 days later.

2. Property on a hard money loan with documents currently being drawn upo fir a long term refi with a credit union

3. Insurance is still for a rehab, not yet changed to occupied

This property was burglarized. Hot water heater, stove, heating HVAC and kitchen sink were taken.

Questions

Should I file a claim with the insurance ? 

Will an insurance claim at this time effect the refi ?

Will any of this cause for a new appraisal?

et-al

[Marcia Maynard]

So sorry this happened to you!

Clear your schedule. You've got a lot of work to do if there's any chance of getting this done before the scheduled date for the new tenant move-in.

File a police report if you haven't already done so.

Yes, file an insurance claim. The loss is significant.

Invest in better locks, an alarm system and/or hire someone to stay at the house until it's occupied. Thieves often return for "second helpings" after they know you've replaced what was stolen with new. Watch the property like a hawk.

You may be able to replace all of those items before the scheduled move-in date of the new tenants. Get on the phone right away with your HVAC company, plumber (for the hot water heater & kitchen sink install), and go shopping for a new kitchen sink and range. The plumber may be able to get the hot water heater for you and the HVAC company should be able to get the new furnace for you.

You may need to delay the move-in date due to these extenuating circumstances. Be careful how you talk with your new tenants, as this incident could spook them and they may decide they don't want to move-in at all.

I don't know what the loan department of the credit union will need to know. But it seems if you replace all that was stolen with new, then it shouldn't affect the loan process at all.

Good luck!