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Old 09-26-2013, 03:54 PM   #16
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Insurance claim states we have to have a contractor and "rebuild".


Just because the home is worth less, doesn't lessen the debt that is owed to the first mortgage company. The note on the property isn't based on "worth". It's based on what is owed.

If a home is purchased for 100k, and the homeowner pays off 10K of that 100K, there's still 90K worth of notes left (plus interest) even if the value of the home drops to 75K. You're not going to be refinanced for 75K without finding 15K somewhere to pay the first mortgage holder the difference. When you owe more than the home is worth, that's what is known as being underwater. And it's a big part of the economic collapse here recently. People didn't think that property values could drop. And too many just walked away when they did.

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Old 09-26-2013, 04:24 PM   #17
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Insurance claim states we have to have a contractor and "rebuild".


I've owned ten houses; I know how mortgages and refinances work. Obviously, what I suggested isn't feasible unless the house still appraises for more than what is owed. I've seen no indication in this thread that the OP is underwater. Obviously, that would change the scenario.
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Old 09-26-2013, 04:43 PM   #18
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Insurance claim states we have to have a contractor and "rebuild".


Run it by an attorney.

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