Elderly in-laws lost their mobile home to hurricane. Should we take the low interest SBA loan to get them a new home? - AgingCare.com

Elderly in-laws lost their mobile home to hurricane. Should we take the low interest SBA loan to get them a new home?

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They received some $ from FEMA they have some savings. Should we just use their savings, or take the low interest SBA loan to get them a new home? We are trying to keep them on their property as long as possible. He has dementia, she uses a walker.

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Vidor had 52" of rain plus they had to open dams which made things even worse. They had almost 4' of water in their home. We couldn't get to their home for a week which by then was full of black mold. It was horrible!! We have since demolished their home and are currently waiting on a FEMA house. We have them in a travel trailer at this time but they are at least on their property. Surprisingly they still had sheep goats chickens and cats that survived. It has been a challenge for over 3 months now. Dementia is definitely making this harder!!!
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JKrystal - As per the AP.... “Louisiana residents displaced by August 2016 flooding and participanting in temporary housing program living in mobile homes have had the program extended. However rental requirements starting March, 2018. Waivers for rent will no longer be issued. Rental rates will range from $789 - 1 bedroom unit to $1155 - 3 bedroom unit.”

If this is a guide to what FEMAs approach is now for temp housing programs, your folks need to remember to save for rent in addition to rebuilding costs. The largesse that was seen for Katrina will not ever happen again, like 3 - 5 years of housing & SNAP support not likely. 

For perspective on August flood was east of Baton Rouge: Put like 6’ of standing water in the I12 area by Denham Springs/Walker. Lots of property consider totaled / over 51% damaged. The spanking new TJMaxx had like 4’ of standing water for days. An astonishing eerie sight. 
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FEMA is providing them a handicap accessible trailer that they have tremendously upgraded for safety from previous storms. They now have a built in sprinkler system with a water holding tank that gives them 15 minutes to get out. Hopefully it will be comfortable for them and they can get settled into a semi normal house situation.
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Sounds as though you have made the best decision. they are used to living in a trailer so should adapt well. I believe there have been some problems with FEMA trailers and many are being sold off cheaply
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They have been approved they lost their mobile home not sure stick built home but I think we have decided to get the FEMA temp trailer and see how it goes
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JKrystal - I’m going to approach this from a whole other viewpoint as one who went through Katrina. Regarding SBA, it is not as simple as touted. Your parents will need to qualify for the SBA loan; it is not automatic. They could be older & so outside the actuarial table for a 20 yr or 30 yr mortgage. Huge swaths of Lakeview & Gentilly were elderly property owners & could not qualify for SBA. Property went blighted and eventually sold and buldozed.

If the same system for Katrina is used, then SBA process for disaster recovery loans run on a different track than regular SBA programs. You will need to get detailed estimates on all aspects of the rebuild. The amount of the loan from SBA is dependent on what you can clearly document as a rebuild cost. A lot of folks went modular (rather than stick build) as it’s a pretty tight turnkey estimate on house costs, plus foundation, stairs, decks, garage, transportation fees. For Katrina, the SBA disaster max was like 225k, so if your costs were more than that (most were) your insurance payments gets used or you borrow extra $ from a SBA participant bank or you dip into assets or you do without. It’s going to be a real challenge and someone’s full time job to deal with for a while as there’s updating to SBA. Plus whatever required documents like a elevation certificate, FIRM mapping, survey, local permits, workmans comp policies from your contractor & thier subs, etc. Free estimates were few. PostKatrina an Elevation certificate that was maybe $350 prestorm was now 2k. Everybody needed it, so either you pay or you wait. SBA can & will close the file if it becomes inactive.

I’d be concerned that your folks have already gotten viewed as pigeons for scam contractors. So you are going to have to do serous follow up on whether licensing, Workman comp, etc are valid & review the estimate and terms in scrupulous detail. For Katrina, SBA had a form that had to be submitted by applicant that the contractor filled out with state registration and workman’s comp info & had to be notarized. “Contractors” flat disappeared. The scam artists know disasters are great for thier game.

If your folks are looking like they are going to be in a Velocity zone or any of the “A” zones for NFIP, realize new insurance costs will be quite quite different. SBA is going to require flood, windstorm in addition to traditional homeowners. PreK our combined insurance costs for the 3 was under 1k; postK first year windstorm alone was $5k. What sadly has happened is some who rebuilt post Katrina and now a decade plus later are retired do not have the income to pay insurance costs. Plus older in general so dealing with closing up a house if you have an evacuation is hard to do. Can your folks secure / move / take whatever on thier own if they have to evacuate next storm season?? Is their income such they can pay increased insurance costs and SBA payment in addition to regular living & health costs? SBA will foreclose. 

SBA also requires that they are placed as a lien holder on your insurance policies. So if say there’s a hail storm and your HO pays 25k for roof work, SBA can hold the 25k unless you show roofer contract for 25k otherwise it gets applied to the loan. SBA $ is super cheap $ - 1.75% home/2.78 biz - but it’s very document driven & not simple. It’s also restrictive as can place lien status on any other property you own. On hindsight we would not do it.

An alternative could possibly be that your folks remain in “homeless” status and get fast tracked into whatever program the state is going to have to come up with for evacuees.
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Jk, there is nothing mean about getting an unsafe driver off the road - the lives of innocent people must be considered before another person's convenience or preferences. If he is no longer safe (and dementia does not get better) then please stop the driving. Remember that old man at the street market in Santa Monica who killed all those innocent people. He should not have been on the road at all.
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Jkrystal5, Awww my heart goes out to you !But we have to give our parents TOUGH LOVE ,just as they gave us as TEENAGERS....YOU ARE doing everything RIGHT!!! full time caregivers are Expensive ,but if they have the money great idea..and YOU ARE NOT MEAN!!! you are a GOOD PERSON !! You are doing everything in your power to help your mom and dad .We do not realize how fast life can change until we have a tragedy such as yours ..GOD BLESS YOU & YOUR FAMILY
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We are working on getting someone to live on property full-time that has done home health for 20 plus years. We have documentation from banks and have filed on the check fraud,. I control their bills and only leave a small amount of $ that he can access. No checks or debit cards. I am on his accounts so hopefully we can keep neighbors away. We bought him a van to get around in but after yesterday we are giving him one more chance before we remove his driving. I just hate it all,,!!! I don't like being mean and he is making me someone I don't like very much
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Jkrystal5,I am definitely leaning towards your parents DO NOT NEED TO BE ALONE AT all anymore expecially since it sounds as if neighbors and others have targeted them as a money source and for check fraud .They need to be protected. AWWWWW SO SAD !
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