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home being demolished

My home is being demolished due to fire damage. How do I get out of my mortgage? Insurance will not cover the full loan amount. by louise962 from Paradise, California. Jan 31st 2019 Reply

Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions

Talk to your lender about options - only option I can think of. The land has value which is part of the security for the mortgage, in addition to the insurance.

Jan 31st 2019
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

You need to contact an attorney who specializes in helping people in your situation.. It's possible the insurance company is not paying you a fair price. Keep in mind that lenders have certain qualifications in regards to required minimum coverage.. if you didn't have sufficient coverage, and you were never notified, then it's possible you can make a claim against your lender or your insurance company.. Also, just because the proceeds were not sufficient to cover the loan, you still own the lot. So if the lot sells, would there then be enough to cover it? Another option is to use the proceeds to rebuild a new home on the same site.. the insurance proceeds should be enough to cover that, less your deductible.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Feb 1st 2019
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