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This is not fully correct. The county adjusts your property taxes to just the land value in these situations
California bad
It is a loan, why is this hard to understand?
Coach
They don't "must" - they can choose not to and the property will be foreclosed. That's prob the route I would go if I owed $1m on a scorched patch of dirt.
Coach
That’s why there is insurance. But I read that the max value that the California Fair Plan would cover is like $3M so some of those people in the Palisades are taking big losses. I saw a story about a person in Malibu that just finished a rebuild and on ocean from home they he spent $28M on and was only able to get $3M of insurance. Ouch.
Agree with A1 - property taxes going to be adjusted downward and the County has already given guidance on how to apply for that. Insurance will cover most people, but construction costs will skyrocket so many will be under-insured. Their go forward insurance rates will also skyrocket which may affect values or even rebuild decisions. You could let the lenders foreclose, but in many cases they can come after you for the deficiency (usually if you re-fi’d). All this is best guess / recollection. I am sure there will be many different situations.
Subject Expert
When the Lahaina fires happened, most mortgage companies allowed for 6 to 12 month suspension of payments while everyone figured out how to handle everything. I’m not entirely sure if the payments resumed or not, but I wouldn’t be surprised if they allow that here at least until the path forward is more known.
Because the money you borrowed to buy a home is still owed, SMH.