Mom's property has had no mortgage due on it for a # of years. Recently there was catastrophic damage from water and frozen pipes. Insurance company paid her directly. The question was asked of the insurance company if she has to repair the house or can she sell it. The response was that 'the money she was issued are for the damages to the house. What she chooses to do now is totally up to her.' What are the financial obligations to the insurance company here? In this economy, repairing the house doesn't make sense as it will cost more than the house would sell for repaired!

You are assuming you can sell the hosue in that condition.

I guess it depends on what you you want to get for the home. Since no one will be able to get a mortgage on a home without the plumbing working normally most buyers will want a lot of this work done prior to purchase.

So the only people who are going to make a offer at all, are flipers or those looking for super home deals.

But the check for repair should cover the entire cost of repair.

So if the house fixed is not worth the repair expect to get very very low offers.

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Originally Posted by bgray261959

What are the financial obligations to the insurance company here?

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Hello b:

She has NONE. The money is hers to do with as she pleases.

excon

It sounds to me that she has already got the value out of the house , The question now is if she can sell the house for any value at all and not have to demolish the house which might cut ito the money she got from the insurance company.

I agree with my comrades here, she doesn't HAVE to make the repairs. However, she can't expect to get a double bonanza either - i.e. she can't expect to sell the house at premium price and pocket the insurance money. Something's got to give.