Options after a house fire...

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PostPosted: Mon Jan 19, 2009 4:05 pm   Post subject: Options after a house fire...  

After a house fire, rather than using the insurance $$ for structure damage to remodel the house, can I sell the house "as is" and keep the insurance $$? I have someone interested in buying my house/lot without having to put this money back into the house and I wanted to know if this was legal to do.

contemplatingnothing
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PostPosted: Mon Jan 19, 2009 11:33 pm   Post subject:   

I am not sure here but when someone comes along they may need to know if you own the house or if it is mortgaged.

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PostPosted: Tue Jan 20, 2009 12:24 am   Post subject:   

The house still has a mortgage but the loan would be paid off when the property is sold "as is"... leaving the insurance $$ as a credit with the mortgage company. Are they obligated to give it to the homeowner or do they have to return those funds to the insurance company?

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PostPosted: Tue Jan 20, 2009 5:50 am   Post subject:   

Quote:
The insurance $$ is initially given to the mortgage company to pay the company directly that is remodeling the house. If the mortgage is paid in full, that insurance $$ is left over. Does the mortgage company have the obligation to pay that $$ directly to the homeowner or is there a legal issue that requires the $$ to go back to the insurance company?




Ideally the residue of the claim should return to the insurance company. However, it happens very rarely. The claim check once paid belongs to the claimant. Therefore, you may suggest the mortgage company to pay the residue to you instead of paying it back to the insurance company.



By the way, is the insurance company paying you in full before the reconstruction of the house? Normally, they pay only a portion of the claim amount to the constructor prior to the repair work and the remaining after the work is done.



However, just hang tight someone with more knowledge will shortly be around.
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PostPosted: Tue Jan 20, 2009 6:34 am   Post subject:   

Quote:
The house still has a mortgage but the loan would be paid off when the property is sold "as is"... leaving the insurance $$ as a credit with the mortgage company.




OP you are required to inform the lender that you are contemplating about selling the property. I think its mentioned that way in your mortgage deed. However, since the claim check was made to the mortgage lender, they would return it to the insurer. The lender can't direct the check to you.

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PostPosted: Tue Jan 20, 2009 11:57 am   Post subject:   

Quote:
Are they obligated to give it to the homeowner or do they have to return those funds to the insurance company?
Absolutely they are required to...you can sell the house, and the rest of the money is yours to keep it was meant as compensation for you loss...selling the house as is makes no difference, you are still entitled to that payment.
Quote:
Ideally the residue of the claim should return to the insurance company. However, it happens very rarely. The claim check once paid belongs to the claimant. Therefore, you may suggest the mortgage company to pay the residue to you instead of paying it back to the insurance company.
Jeorge this is incorrect, the insured is due this money...would be the same if a vehicle were damaged and the owner decided to sell it or not repair it and keep the money..the insurance company is NOT entitled to the balance of the monies after the mortgage is paid...


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PostPosted: Tue Jan 20, 2009 10:48 pm   Post subject:   

I must say that is good to know when I read the statement I thought it would be rather unfair. What happens if they only pay a portain of the claim and the person is not going to repair the home or is this point not correct either?

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PostPosted: Tue Jan 20, 2009 11:30 pm   Post subject:   

Quote:
What happens if they only pay a portain of the claim and the person is not going to repair the home or is this point not correct either?
Well then thats a problem...some companys now issue a portion of the claim, then the balance when it's completed or personal property has been replaced....personally i think it stinks but someone got it thru...and honestly i'm not sure what happens then..hopefully tcope will pop in, (i haven't handled property claims for many years, that was NOT done when i was still handling them)..


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PostPosted: Thu Jan 22, 2009 3:10 am   Post subject:   

Depending on the amount of the loss, the depreciated amount will be issued minus the deductible with the mortgage company on the check. If the repairs are not complete, the recoverable depreciation (the rest of the money) will not be issued. An insurance policy owes the insured what they had unless the insured has a replacement cost policy. This is what the initial payment of the depreciated amount represents (what the insured had). The replacement cost policy provision does not kick in until repairs are complete. If the loss is small (usually under 5K), they may issue the entire amount as it saves paperwork, gets a claim closed and keeps from re-inspections.

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PostPosted: Thu Jan 22, 2009 12:03 pm   Post subject:   

well there you go then..thanks Das..



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PostPosted: Sat May 29, 2010 9:21 pm   Post subject: ROOF DAMAGE  

WITH A REVERSED MORTGAGE WILL I GET THE RECOVERABLE DEPRECIATION CHECK


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LADYBLUE777
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PostPosted: Wed Jun 02, 2010 3:58 am   Post subject: ?  

Regardless; you may want to check with your claims adjuster and then with your local fire marshall - you may not be able to sell the house without a c/o- if there's a lien you may have to have the lien holder sign off as well


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PostPosted: Fri Aug 20, 2010 11:26 pm   Post subject: house fire  

I had a fire and I am displaced out of my home when all repairs are finished am I entitled to a displacement settlement.


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PostPosted: Sat Mar 05, 2011 1:48 pm   Post subject: how to get the money  

As per the law, I think, my insurance company has issued a check to my mortgage holder for 70% completion of the house. At the beginning, the insurance company issued a check directly to me for contents. This is what I've been using to fix the house. I'm acting as my own contractor, as I have a lot of buddies who are doing work for free.



We are almost done, and I have yet to get one penny from my mortgage holder. Now is the time I need to start replacing furniture, electronics, even bedding and curtains and I'm out of money. Every time I sign something for the mortgage holder to release the funds, they have come up with something else they say they need. I'm worried I'm being scammed by the mortgage company (Bank of America). The insurer had agreed to pay off in 1/4 the money at a time. The point of my friends helping was so that I'd have a chunk of change to put in the bank (I'm 72). We've done a beautiful job on this old house and I'd like to get it done. What do I do? By the way, all inspections, from the town, county, insurance compnay and even the banks inspector have commended the work!



P


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PostPosted: Tue Oct 07, 2014 5:38 pm   Post subject: Contract for deed  

I am in a contract for deed, there was a fire at the house, am I still oblagated to pay mortage without a place to live


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R.dukes89@yahoo.com
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