All Forum Posts by: Victoria Hunkin

@Sabrina Liggett hi have you found a PM? What is your experience and how is it going? Would you recommend them?

@Dana Wappler hi I would be interested in getting connect to them

Quote from @Victoria Hunkin:

Hi,

Wanted to get feed back on my situation. My rental property caught fire Aug 31 in Kentucky, it is a total loss. It was vacant and no one was hurt.

The problem I am having is that my lender is making me pay off the loan for this property that is now a total loss. The insurance company is saying it cannot issue more funds aside from the initial payment which is not enough to pay off the loan.

I have a few questions:

1. Can a lender basically call my loan because of the total loss? If so, should there be something in writing like a contract that states this?

2. Is there a way to get more money from my insurance claim. My dwelling coverage is over $200,000 and the loan pay off is $79k. The adjuster is coming back with a initial pay out of $75k. I need the funds to pay for a full demolition because the city has ordered it which leaves me with only $56,700 to go towards paying the loan. Is there a way to have more funds released to help pay the loan? Adjust says they will only release more fund to go towards rebuild or purchasing a new home.

3. Should I seek a insurance attorney to help handle?

I just don't see how this is reasonable. My property is a loss and yet I'm having to pay for the loan yet I have insurance. Any tip, advice or help? TIA

Should I seek legal representation?

UPDATE:

Insurance paid out Initial Pay out which is the Actual Cash Value and that helped with paying off the loan. Now, we own the property free and clear which is now DEMO because the city ordered us to do it for safety concerns. So we can now sale the land. (NOTE, our policy has coverage for demo)

But since we are choosing not to rebuild because we don't like the neighborhood and it will cost more. We have the option to purchase a new property that is like kind to the property we lost. Our insurance will help us with the down payment based on the amount of our policy (our max). Purchasing a new property makes more sense to us.

Thank you for all those that replied.

Quote from @Aaron Porter:

you definitely need to work with your agent and your lender.

the mortgage has to be paid back whether or not you decide to rebuild the property, but lenders do not usually call for repayment of the loan unless you decide not to rebuild.  

The lender is saying the property isn't worth anything because it's a total loss so I need to pay for it. Is there something I should ask my lender to help my situation? I also had a line of credit which I used and they want me to pay that off too. I'm not sure if having a commercial loan for 5 properties in one loan might have something to do with this?

Quote from @Chris Seveney:

@Victoria Hunkin

So two things going on - your bank of course is calling loan- they will require to be paid.

Not sure I am following why your insurance company isn’t giving you full replacement value unless you undervalued the property and co-insurance kicked in but the property replacement value would have to be like $500k.

Did you or were you in process of rehabbing the property ?

The insurance company says some sort of Kentucky rule that the initial payment is fair market value minus land minus my deductible is the initial payment. The only way for them to have more funds drawn is if I rebuild or purchase a new property. 

The property was vacant I was in the process of renovating when the fire incident occurred. 

Hi,

Wanted to get feed back on my situation. My rental property caught fire Aug 31 in Kentucky, it is a total loss. It was vacant and no one was hurt.

The problem I am having is that my lender is making me pay off the loan for this property that is now a total loss. The insurance company is saying it cannot issue more funds aside from the initial payment which is not enough to pay off the loan.

I have a few questions:

1. Can a lender basically call my loan because of the total loss? If so, should there be something in writing like a contract that states this?

2. Is there a way to get more money from my insurance claim. My dwelling coverage is over $200,000 and the loan pay off is $79k. The adjuster is coming back with a initial pay out of $75k. I need the funds to pay for a full demolition because the city has ordered it which leaves me with only $56,700 to go towards paying the loan. Is there a way to have more funds released to help pay the loan? Adjust says they will only release more fund to go towards rebuild or purchasing a new home.

3. Should I seek a insurance attorney to help handle?

I just don't see how this is reasonable. My property is a loss and yet I'm having to pay for the loan yet I have insurance. Any tip, advice or help? TIA

Should I seek legal representation?

Rental property caught fire possibly arson. It was a vacant property. It is a Total Loss. What are some questions I should be asking my insurance adjuster?

Quote from @Nathan Nicholson:

@Victoria Hunkin

Great to meet you. Are you buying in Louisville from CA?

 Yes I am. Are you a member of the Kentucky Real Estate Investor Association? Highly recommend.

Hi Nathan! I'm Victoria I'm a new investor. My current strategy is LTR in the Louisville area. How are you? I should take your advice and participate more in the forums. Happy to help in any way I can and looking forward to learning from you and many other like minded investors. 

Quote from @Nathan Nicholson:

I have been an investor for 10 years on the side but semi newer to doing this almost full time. Looking to connect with like minded people who are wholesalers, REO investors, Bank asset managers, experienced BRR and or flippers beyond people who have developed commercial RV, storage, built larger complexes commercially to learn, work and partner with and or pass along deals .