What happens to liens in Houston Texas?

[Joshua Howaniec]

What is going to happen to the 80% of homes that did not have flood insurance in Houston Texas? I assume the mortgages are not forgiven but I also doubt owners will continue to pay for nothing. The bank will have nothing of value to collect in some cases except a home that is destroyed. Will banks sell the liens with the property? How will it be reset?

[Roy Oliphant]

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.