CAN I TAKE ACTUAL CASH VALUE INSTEAD OF REBUILD HOME. AND IF I TAKE THE CASH VALUE HOW WILL THE MORTGAGE GET PAID OFF?
2007-11-30 12:52:19 · 5 answers · asked by adrianlove_1 1 in Business & Finance ➔ Personal Finance
If you take the cash you will get it at actual cash value (so less depreciation). If you take the cash value then you'll have to pay the mortgage off with the cash.
I'd replace it and sell the house, you'd end up getting more.
2007-11-30 12:56:17 · answer #1 · answered by Anonymous · 1⤊ 0⤋
If you take the cash value, the mortgage will be paid off by the check you write to the mortgage company from the insurance money. I can PROMISE you the note you signed has a provision legally requiring you to do so.
The ONLY question is if your insurance policy allows the option of getting a check instead of paying to rebuild. Anyone who has not read YOUR policy can't answer that.
2007-11-30 14:38:53 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
The mortgage company has a lien on the house - they get paid first. You get what is left over. What you do with it is up to you. What, you think the insurance company is going to force you to build a house? You will still have the land and if the mortgage is large, the only way to get cash will be sell it. Maybe you can work with the mortgage company to put their interest into a new house, but that is not what you want.
2007-11-30 12:58:21 · answer #3 · answered by Mike1942f 7 · 0⤊ 0⤋
just went through this....i don't know what your policy is like, but.....the mortgage will be paid as long as your policy is larger than the mortgage, and they decide the value will be high enough...this is so complicated..if you choose to take this route, the insurance company will give you about 85% of the insured value of the home depending on the damage and what their people estimate....as for replacement for your personal items...each will be itemized by a hired company, and if you take cash, you will not receive it all, but will get a percentage....if you want you can replace each and every item, but you will have to purchase things, and then you turn in your receipt...if you want more info on how things worked for us...email me...or talk everything out with your adjuster...i am very sorry for your loss, and hope everyone in your family is safe...this is very devistating for all involved and can take many months for everyone to get back to normal...take care and be safe
2007-11-30 13:00:19 · answer #4 · answered by pissy_old_lady 7 · 0⤊ 0⤋
You can take the cash value, but the insurance company will pay off the mortgage first and you'll get the remainder.
2007-11-30 12:56:45 · answer #5 · answered by Dominicks Granny 4 · 0⤊ 0⤋