It is too soon to tell just how bad Hurricane Harvey impacted commercial mortgages in Texas. The southeastern part of the state was recently hit hard by the category 4 storm, which produced record rain-fall leading to a great deal of damages caused by floods. Since many lost everything to the devastating storm, borrowers are going to need all of the help they can get to not fall even more into debt and to get back on the road to recovery.
American Banker is reporting that the impact of Hurricane Harvey was more substantial for residential mortgages compared to commercial mortgages in Texas. Of course, this is where insurance plays a significant role, since most commercial businesses will have flood coverage, but most residential homes will not.
With over 185,000 homes either damaged or completely destroyed by Hurricane Harvey, the Texas Department of Emergency Management is reporting that not even a quarter of these residential homes have flood insurance. That leaves an outstanding percentage of those, around 80 percent, who will be responsible having to deal with all of the costs caused by damages from the floods brought on by Hurricane Harvey. Where on the other side of things, most of the commercial businesses that were hit do have insurance that covers flooding, so they will be likely to recover quicker.
It is estimated that around 500,000 vehicles were destroyed by the intense flooding that Hurricane Harvey brought to the area. And with so many that do not have flood insurance for their home, you would think that many would also not have it for their automobiles. Luckily, the numbers are a little better when it comes to car insurance that covers damages from flooding. In fact, 65 percent of the vehicles destroyed are expected to have insurance that would cover damages from floods. This is just another issue adding the road to recovery to be a longer road than desired for those lacking insurance.
Many banks and lenders are offering their support by calling their customers that are backed by commercial mortgages in Texas asking how they can help them recover. Assistance will vary from lender to lender and most small businesses are expected to see a bigger impact from Hurricane Harvey than larger commercial businesses. That is because many of these businesses not only have to deal with recovering from the damage, but also from seeing a loss of revenue from losing business anywhere from days to weeks while the entire area recovers from Hurricane Harvey.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.