What happens to liens in Houston Texas?
Contractor · Indianapolis, IN · Member since 2016 · 267 posts · 144 votes
What happens to liens in Houston Texas?
Most Popular Reply
Rockwall, TX · Member since 2014 · 380 posts · 211 votes
9yMost will probably find someway to repair through FEMA loans and other government and NGO assistance, lots of hard work, personal expense and cutting corners on the repairs. There will be a significant number that go to investors because the owner will not have the means to repair. The ones that are total losses will probably show up on the tax sale in a few years with city liens for demolition and clearing.
Some of these folks have been thru 3 floods in 4 years. Those house should not be rebuilt or require significant elevation changes before permits are allowed. But since the city issues the permits and the feds pay the flood bills, we will have to see if those restrictions are actually put in place. If they are, it may make them too expensive for investors.
4 Replies
- Rockwall, TX · Member since 2014 · 380 posts · 211 votes9y
Most will probably find someway to repair through FEMA loans and other government and NGO assistance, lots of hard work, personal expense and cutting corners on the repairs. There will be a significant number that go to investors because the owner will not have the means to repair. The ones that are total losses will probably show up on the tax sale in a few years with city liens for demolition and clearing.
Some of these folks have been thru 3 floods in 4 years. Those house should not be rebuilt or require significant elevation changes before permits are allowed. But since the city issues the permits and the feds pay the flood bills, we will have to see if those restrictions are actually put in place. If they are, it may make them too expensive for investors.
- Investor · Cypress, TX · Member since 2016 · 170 posts · 139 votes9y
@Roy Oliphant so true, after >25 years here I am amazed at several things. The resiliency of the area and it's people. The laws, regulations, and assistance given to flood prone areas. How it all perpetuates itself.
@Joshua Howaniec many lenders will assist and make concessions after a natural disaster like this.
That said, Doing the same thing over and over and expecting different results is insanity,..... right? But homes here (and other parts of the country also) keep getting rebuilt in questionable areas (very high risk) and it never seems to end. I doubt it will be any different for this event. So much focus on helping the victims (needed) and then on rebuilding and restoring the status quo. Texas culture abhors unnecessary regulation. This will happen again, it's called Hurricane "season" for a reason.
Case in point is an area near The Woodlands (Montgomery County) called River Plantations. Built very close to San Jacinto river. It has been the victim of every major (and some minor) flooding events since I've lived here. Many homes again flooded by Harvey. I'm betting they will be rebuilt. This is common throughout Houston Area and much of Coastal Bend TX.
Houston area will continue to grow (jobs, population, size) factor in housing costs that are >25% below the National Average, a very temperate climate, business friendly environment, and it will continue to draw people and business from all over. Investors will continue to come here because opportunity continues to exist here.
- 9yDon KonipolBusiness MemberInvestor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
Answers above are very good.
more than one third of homeowners have no mortgage. Of the remaining 2/3, approximately one half owe less than 50% of the value. assuming that the flood did not make the house a tear down, most of these are worth fixing up.
However, it's quite probable that many houses will be foreclosed on. Much depends on the type of Federal aid that is made available.
Having lived in Houston 35 years, I am aware of some interesting facts. Most flooded homes were not in the flood plain. Most where in the 500 year flood zone, which means the chance of a flood in any one year causing water damage is one in five hundred (similar to the chance of Trump having been elected!). So, this doesn't mean that a house should be torn down. Further, flood areas of Houston continually shift as new construction takes place, new flood control measures are put in place, etc.
Probably going to be an opportunity for fix n flippers, IF they can find contractors to do the work, as almost all contractors will be working on insurance claims.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.