I just received a "new" option letter from the Road Home. Overall I'm very satisfied with the $120,406.63 they're offering this time around.
On July 14th, 2006, we met with the Road Home people in Baton Rouge, as we were part of the pilot program. Then in Mid-October, we received our first option letter. It said that we were eligible for $64,116.87. There were two major mistakes: First they estimated our house to be worth $146,154. However, we purchased our home for $157,000 in 2002, and it was appraised for $193,000 in 2003. Our house was easily worth more than $200,000 prior to Katrina, but thank God we refinanced and had it appraised. Second, they claimed we received $12,495.67 from Allstate Homeowners. Instead, we have received much less than half that figure.
This new option letter reads as follows:
Estimated Pre-Storm Value: $193,000
Estimated Damage to Your Home: $289,363.80
Homeowner's Insurance Proceeds: $3,051.91
FEMA Assistance: $0
Flood Insurance Proceeds: $64,541
Penalty Assessed for No Insurance: $0
So now we'll sign it and fax it back. I think with the approximately $70,000 from Allstate, the $120,000 from the Road Home, and $118,000 from the SBA, we should be able to fix our house. But there has been talk about forcing people to pay off their SBA loan with their Road Home Funds, meaning people can't have both the Road Home money and the SBA Loan. If that happens, we're screwed.
Later Note: Well it happened, and we're screwed-The SBA took its loan offer back in mid-January. Read about it here.