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house burned...what are my options

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In 2003 I borrowed $99k from BOA to buy a mobile home on 25.5 acres(total price $105k). On 9/12/12 my mobile home burned due to wildfire, I contacted the ins co. and BOA. The ins co. said total lose and is sending a check for total of policy. BOA said to send the check asap. The claim is $79k and the principal balance is $86k. BOA said I have to payoff the note or purchase a mobile for at least $86k. The rep stated that they will see if the investor will accept the $79k to satisfy the note, if not then I will need to come up with difference or purchase. Either way I'm out the cost of clean up and possibly the additional cost of having a house moved out to the property. My question is do I have any other options?

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No...The fire dept just called it a wildfire and the ins company called it fire from outside source.

Perhaps so, but don't think for one second that the insurance company is not looking for some party to subrogate against. They aren't going to shell out policy limits and go quietly into the night.

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Perhaps so, but don't think for one second that the insurance company is not looking for some party to subrogate against. They aren't going to shell out policy limits and go quietly into the night.

I'm not sure what the ins. company will do about that, but they are sending the check.

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I'm not sure what the ins. company will do about that, but they are sending the check.

Trust me the insurance company will file suit against God, if they can't find any other unlucky party that was withing 500 miles of the fire on that day, and try to deliver the summons and complaint on the next NASA shuttle to outer space.

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Then tell the mortgage company you want to claim on the mortgage insurance. See what they say.

also check state and federal authorities for rebuilding loans it may be better than the mortgage company.

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Then tell the mortgage company you want to claim on the mortgage insurance. See what they say.

What is a claim on mortgage insurance?

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Our house insurance has a limit for what they will pay if the house burns down but the coverage on clean up, temporary housing, contents, and all of the little side coverages are separate than the value of the house.

The thing is it sounds like your land is about paid for, and you have water,sewer and electric already there, those are positives and gives you some equity

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The thing is it sounds like your land is about paid for, and you have water,sewer and electric already there, those are positives and gives you some equity

Yes...there is lots of equity, I just don't want BOA forcing me to do something I don't want or something I don't have to do

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Yes...there is lots of equity, I just don't want BOA forcing me to do something I don't want or something I don't have to do

I'm not trying to sound like a debbie downer here, but what BofA should do, what you want BofA to do and what BofA will do are quite possibly three very different things. Just be ready for a fight because they might go stupid on you incredibly fast.

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Hey, I have worked in insurance for 13 years now. Texas If I remember my days in the personal lines section is a pain in the a$$... god I dont miss mapping out fire hydrants and stations...

If this happened to me, I would pay off the house, keep the land then, with the value of the contents (assuming 50% of the dwelling amount) thaats 40k. You now own the land and with 40k, can most likely put a new modular home on your property with a huge deposit and a shorter length loan.

Dont forget that if you have things like outbuildings my company at least, covers things like sheds, pool houses etc up to 20k each, or you could increase that value.

If trees were destroyed, they may even be covered up to a few hundred each... look over your policy.

Mind you I work for a insurance carrier , not an agency, and we generally only cover the rich and famous and are world famous for our handling of claims. I know not all companies are not as nice as we are...

Look over your contracts, your paperwork your policy, the back section tells you what isnt covered in instances like this generally, I coudl go on for hours explaining a homeowners insurance contract and policy.

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