What happens to my mortgage?
Contact your lender to notify them about the fire and ask if they have a forbearance program for fire victims. You may be able to get a reprieve from paying your mortgage for a few months while you get back on your feet.
Once you complete your insurance claim, much of the funds will go to your mortgage lender, where they will sit in an escrow account until you rebuild. You can also opt not to rebuild and if the funds don’t cover your mortgage, you can ask to recast the loan, which means the escrow funds are applied to your mortgage balance and the loan is recalculated.
This helps free up the funds from being tied to a rebuild if you choose not to rebuild, or if you don’t want to rebuild in exactly the same location, which the bank usually requires.
What are the basic things I have to do?
- Secure official documentation showing the total loss of your home
- Contact your insurance company and get the claims process in motion immediately
- Contact your mortgage lender to let them know what happened
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