When a home is destroyed within a storm does the existing mortgage own to be rewarded past its sell-by date near the insurance money?
Answers: No, but you still owe the money!
Depends on the loan, the mortgage company and the insurer.
Usually if the house it totally irreparable, you hold to pay out the existing note and refi a construction loan
Your insurance company should pay off lenders since they send any money to you.
Yes unfortunatly. You still owe on the loan.
No different than if you total a sports car before the car is compensated off, you have to rate it off anyway, even though you dont have a saloon anymore.
Of course it does... or rebuilt. Whichever. That is why the mortgage holder is listed on the insurance policy as the "loss payee"
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