Private lending First lien- mortgage property got fire

[Raj G.]

Hi, I did private lending to one of my friend , he mortgaged his investment property as first lien with me.

agreement was that he will pay interest monthly, and he was almost regular on that.

in July that property got deadly fire, in August beginning he paid my interest for July and didn't mention anything about fire.

today, he called me and told that he wants of pay off(but he didn't pay last month's interest).

I said OK start processing for payoff, but pay me last month's interest asap, then he told me that house went on fire and he is hoping to get insurance money and then he will pay, he has no money to pay interest .

Now, my concern is should I wait and watch or I need to take some pre-action to make sure that I get insurance money since I am on first lien.