National Flood Insurance Program

Quite frankly, I thought the 3rd time would be the charm, but no.......... Once again Congress failed to extend the National Flood Insurance Program and again this has caused delays in closings. The National Flood Insurance Program provides federally backed and affordable flood insurance coverage for millions of homes and businesses nationwide. Here on the coast lender's require flood insurance as part of the loan, much like they would traditional homeowners insurance. By some estimates, this failure to extend the program has caused the delay of approximately 1400 properties daily across the country.

Until the program is reauthorized, buyers cannot obtain the insurance, however in some cases they are able to assume the seller's policy. So why am I writing about something negative in the real estate market? Quite frankly because we need help. It is certainly not news that the real estate market has suffered dramatically over the last several years and here in the second home market it is no different. Many people have asked me why we are suffering because the second home market is just another luxury of the rich. On more than one occasion I have heard something like "rich people will buy in any market". That's just not true.

Beyond the proclivities of the people with significant discretionary income, let's think about what these second and retirement homes mean in the broad picture. In my opinion, they are the basis for a big part of our economy and a source of livelihood for our middle class. Think of the carpenter doing the framing on the house, think of the irrigation company installing the system, think of the washers, dryers, refrigerators, tv's etc. being purchased and installed, think of the restaurants that are being patronized, think of the home improvement stores selling all manner of merchandise to a new home owner and the list goes on and on and that is precisely why we (those of us making our living in the housing market and the sellers trying to sell their homes)need this program to be reinstated.

On a daily basis, I read about how much Washington is doing to stimulate the housing market and for that I say thanks. I am not asking for a new stimulus, I am just asking to resuscitate a necessary program before it is too late, I'm just asking to not create problems. The housing market has taken many blows to the head and we keep getting up -- we have too,our nation's economy depends on it. If you agree with me that Congress shouldn't break for independence day without passing this, please contact either Jim DeMint or Lindsey Graham. If you go to their websites, you will be directed to fill out a form which is fine, however a think a better idea is to email their schedulers at alice_james@lgraham.senate.gov or julie_blackorby@demint.senate.gov. Thanks in advance.