[StBernard] Buy-out plan

Westley Annis westley at da-parish.com
Mon Feb 20 19:31:45 EST 2006



CM,

We are waiting for the guidelines as to the formula for how the state will
develop its use of the money that will be accessible.

Once we get this, hopefully things will get a little clearer. Buit don't be
too optimistic about the insurance issue because many programs require this
as part of the program.

We'll post something as we know it.

Craig

-----Original Message-----
Craig,
Have you considered how SBA loans will be figured into any buy-out
and/or grant? If someone who didn't buy insurance (1) gets paid the value
of their home to pay off a mortgage AND (2) gets a low-interest 2% SBA loan
to rebuild, that doesn't seem fair to me. Those of us with insurance (1)
get the insured value of our home to pay off the mortgage (of course, we
paid insurance premiums for that), but (2) we don't get a 2% SBA
low-interest loan to rebuild -- we have to borrow from a bank at 6%. Those
of us who had insurance were not eligible for SBA 2% low-interest loans
precisely because we had insurance. In other words, those without
insurance come out ahead -- we both get the value of our houses in a cash
payment (to pay off a mortgage, presumably) but they get a low interest SBA
loan and I don't. Seems to actually penalize me for insurance. Am I
missing something? If insurance money is going to factor in against me, it
seems to me that it should factor in either for the SBA 2% loan, or for the
federal buy-out/grant money, but not for both.

CM








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