Okay, 5 days prior to closing on our new home our old home caught on fire and burned down completely (Due to ice storm). Our settlement amount will come close to what we owe on our new mortgage. I say we pay off our new mortgage (155K) and keep our old mortgage (30K) and just clear the lot or slowly rebuild the burned house and use it for a rental. This home in is Oklahoma, so the price of homes (and new homes) isn't as high as other states.
How else would be a better investment.
2007-12-28 08:43:23 · 6 answers · asked by no kidding 3 in Business & Finance ➔ Personal Finance
The legal contract doesn't say anything about paying off the mortgage with a settlement. In fact, how would one rebuild if they paid their mortgage company first? Makes no sense. If we keep the old mortgage, not tell them about the fire, just continue to pay the payments, how else would they be concern? So - just by chance they drive by the home and see its burned, we then have our new home, paid off to use as assets, if the mortgage lenders gets their panties in a wad. Actually, I really needed further advise on this.
2007-12-31 02:35:55 · update #1
Pay off the old one and a big chunk of the new one. Put some away in an account for a rainy day (6 months living expenses if possible) Buy yourself a little something, but not too much.
2007-12-28 09:42:42 · answer #1 · answered by Anonymous · 1⤊ 0⤋
I suspect you will have to pay off that old mortgage first. The insurance check will probably be made out to you and the lien holder, the mortgage company. They won't sign off on that check unless they are paid or the money is used to rebuild.
2007-12-28 16:52:37 · answer #2 · answered by bdancer222 7 · 0⤊ 0⤋
Do you really want to be a landlord? Some people don't mind, but it's a royal hassle.
And as a general rule, real estate is not as good an investment as a good stock index fund. Americans have seen home prices rise a lot in recent years (until just recently) and have gotten a distorted idea of how much money a house can earn you.
2007-12-28 16:50:59 · answer #3 · answered by Anonymous · 0⤊ 1⤋
I'd say don't spend anything until you get your tax return done.
Next, plan on putting the insurance money towards the old mortgage--the legal contract you signed when you got the loan should require you to pay it.
2007-12-28 16:50:36 · answer #4 · answered by Anonymous · 1⤊ 0⤋
do not count your chicks till the eggs hatch -- i think you will find when you get the check your problem will go away -- the check should be made out to you and the mortgage company -- so you will have to pay the old mortgage and then pocket the rest!!!!
2008-01-04 17:59:16 · answer #5 · answered by mister ed 7 · 0⤊ 0⤋
I think you have a good idea, get rid of the bigger of the two, yet still have the property from the other house...very smart!!
2007-12-28 16:52:04 · answer #6 · answered by kaycee 3 · 1⤊ 1⤋