Condemned house and mortgage - help pls

We suffered significant damage from sandy. I'm talking 4 1/2-6 feet of water. Everything is completely gone and from what I have read this house fits the definition of condemned. Now assuming I am right, what happens with my mortgage? Please help! Do I need a lawyer? We've had enough! Do I declare bankruptcy and walk away? This house is problem after problem

Re: Condemned house and mortgage - help pls

First off, I am sorry you and so many others are going through this.



It's a crazy time right now, so wait until you speak to your insurance company first.

You may have the option to rebuild.

Condemned house and mortgage - help pls

I am so sorry!! If you do not have enough in Flood Insurance and FEMA to rebuild then you will have to take a loan to repair or sell. You would still be responsible for paying the mtge.

Re: Condemned house and mortgage - help pls

call your insurance company/FEMA to see what you can get.. and maybe you could contact the lawyer who handled your closing to see if he has any advice or clue how this would work with regards to the mortgage if you still did not have enough to rebuild.. so sorry you are going through this and i pray that everything works out for you in the end...

Condemned house and mortgage - help pls

Your mortgages doesn't go away. Your insurance will be the rebuild money and you continue paying the mortgage.

You can walk away but it will kill you credit wise and you wouldn't be able to buy again for a bit

Re: Condemned house and mortgage - help pls

We had a large claim for a pipe that burst in our kitchen 2 years and it isn't a cut and dry process unfortunately.


We submitted it and the checks were written to us AND the lender. We had to endorse it and then mail it to the lenders claim center where they creat an account and put in escrow. Next we were told that we would be given the money in 3 increments. The first when at the beginning which needed to fight for to start buying material and cabinets. Next was when the kitchen was at 75% completion and then the last when it was done. On top of that we needed to provide receipts for EVERYTHING.
We had WellsFargo at the time and I was always fighting with them to try and give us the money sooner and they wouldn't. We needed to layout most of the money.

The biggest reason for them doing it this way was because of Hurricane Katrina. People would submit claims, get all the money and then they abandoned there home and would run with money and default on the loan.


I am sorry that you sustained all that damamge but speak to your insurance carrier and lender and find out the process. I know that Wells was one of the stricter lenders.