Posts Tagged ‘fire’

One of my rental properties had a major fire.   The insurance only paid so much and at first I was unsure whether the cost of repairs could be covered.   I called my lender and explained that I was having trouble finding bids that would come in under the insurance amount.

I asked what help they could give.  I wasn’t sure of what help, maybe they could help negotiate with the insurance company.  Maybe they would offer forbearance on the payments.  The answer.  Nothing, they weren’t willing to do anything.   I explained to them that this property was underwater, not by a lot, but that it would not be worth it to me to come up with substantial additional money to fix it up.  That a good financial decision might be to give it to them. I pointed out that that the mortgage payments were up to date and it was in their best interests to make that situation continue.  The response? “Perhaps you could find a negotiator that would help you with the insurance”.

Banks are in business to make money.  Everyone understands that.  But I’m finding so many examples of extreme shortsightedness on their part.  If this downturn continues and more people get fed up with the banks, they might just rue the day over how badly they treated their customers.

And that was just the beginning of the nightmare this bank put me through in rehabbing this property.  The lender?  Bank of America?


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