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Answers (3)
Best Answer
- Pasadenan
- Contributions:21466
Why should any insurance company pay out more than the house is worth? The land should have some value too!
1) Get other estimates; you were probably told on the high side.
2) Find out what it would cost to level the house to the ground, and what the lot would sell for empty.
3) Find out if you can sell the house "as is".
4) Take the insurance money, liquidate the house, pay off the loan, and buy something else.
And that number sounds completely wrong anyway, unless perhaps slab on grade? House movers don't charge that much to pick the house up and put it back down. And you may be able to pump grout to remedy the soil condition with the house in the way anyway.
Has the "source" of the sink hole been determined yet? Is it rotting tree roots from a tree that was removed? Or is it an underground stream? Or was the soil just not compacted correctly before pouring a slab?
1) Get other estimates; you were probably told on the high side.
2) Find out what it would cost to level the house to the ground, and what the lot would sell for empty.
3) Find out if you can sell the house "as is".
4) Take the insurance money, liquidate the house, pay off the loan, and buy something else.
And that number sounds completely wrong anyway, unless perhaps slab on grade? House movers don't charge that much to pick the house up and put it back down. And you may be able to pump grout to remedy the soil condition with the house in the way anyway.
Has the "source" of the sink hole been determined yet? Is it rotting tree roots from a tree that was removed? Or is it an underground stream? Or was the soil just not compacted correctly before pouring a slab?
- wetdawgs
- Contributions:26851
One of your responsibilities when purchasing the house was to obtain insurance to cover such disasters protecting both you and the mortgage cmpany. It is your house, and you still owe the mortgage. Apparently you will be looking for a loan to make up the difference between insurance estimate and what it actually costs.
Or, perhaps you could consider foreclosure and recognize that you'll be renting for several years.
Or, perhaps you could consider foreclosure and recognize that you'll be renting for several years.
- jjlen
- Contributions:19
I'm not sure what you mean by "what can be done with the mortgage" -- you still owe the money, of course, because you borrowed that money. The fact that you didn't get 100% replacement insurance doesn't change that. What is your goal? To get the damage fixed? To walk away from the house?
Talk to the bank and see if they would allow you to finance the gap between your policy coverage and the actual cost of the damage. They are under no obligation to do anything, of course, but they do have an interest in getting the sinkhole fixed. After all, the house is their security for the mortgage, so if the house collapses, their security is gone. Don't approach them to ask if they will reduce the mortgage -- ask if they will work with you to figure out financing to fix the damage. Remind them it is in their best interest to make sure the house is solid.
Talk to the bank and see if they would allow you to finance the gap between your policy coverage and the actual cost of the damage. They are under no obligation to do anything, of course, but they do have an interest in getting the sinkhole fixed. After all, the house is their security for the mortgage, so if the house collapses, their security is gone. Don't approach them to ask if they will reduce the mortgage -- ask if they will work with you to figure out financing to fix the damage. Remind them it is in their best interest to make sure the house is solid.
What can be done with a mortgage if you find out your home has a sinkhole under it?
Good evening.
I just found out that our house has a sinkhole under it. The damage is estimated at $226,000 but insurance company say policy only covrs $170,000. They arent willing to negotiate the balance of the home which is $148,000. Any ideas?
Thanks,
Zahrah Madison
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