If Your House Burns Down, Do You Still Have to Pay Your Mortgage?

by Amy Cimetta | Mar 13, 2025 | Lending, Real Estate Advice, Uncategorized | 0 comments

If you lose your house in a fire… the mortgage doesn’t just disappear. You are still obligated to make loan payments. But lenders may offer you short term relief in the form of mortgage forbearance. Lenders offer different options, and you should contact your mortgage servicer (the institution that manages your mortgage payments) to check your eligibility and options to see if they can help you. Forbearance is only temporary and ultimately, you will have to pay what you owe. Repayment options may include paying back the money in a lump sum at the end of the forbearance term, modifying your loan, extending it past its initial term length, spreading the payment across multiple months on top of your current mortgage payment, and tacking on the missed months at the end of your mortgage. In my opinion, the last option is the most favorable and easiest to manage. But please beware if you plan to purchase another property in the near future, a forbearance may have a negative impact on your ability to qualify for a new loan. The new lending institution will interpret the forbearance as your inability to pay your debts, so why would they want to extend additional financing to you? Consequently, a new lender may want you to prove that you can make payments, requiring you to make timely payments on your current mortgage for a set period of time before they will approve you for a loan. So, if you are truly able to make your mortgage payments on time and really don’t need the mortgage relief, it may behoove you not to take advantage of these forbearance options in order to maintain strong credit and the ability to get more financing when you need it. If you are a victim of a fire and need disaster relief, here is a link to some resources. https://www.insurance.ca.gov/01-consumers/140-catastrophes/WildfireResources.cfm. There are in-person disaster relief locations. You may be able to apply for grants and get other assistance as you work your way through the financial, legal and practical challenges that you face. If you have any real estate related questions. feel free to reach out to me.

j g

19:36 24 Sep 24

Impressive, efficient, personable. These are just a few words to describe Amy Cimetta’s ability to comprehend what is needed in any given situation.
She managed the sale of my house swiftly. Anytime there was an issue to be resolved, she worked to get successful outcomes. My confidence in her abilities grew stronger with each phase of the selling transaction.
After interviewing other realtors, what impressed me about Amy is her awareness and understanding. A professional who is always a genuine human being. I will be hiring Amy for any future real estate transactions.
Amy showed keen insight. The business acumen she displayed exhibits no limits. A constant bright light through the entire process. Her team of professionals are smart and savvy. Personable and understanding. They listen. Always timely and aware with positive attitudes.
Amy was prepared, informed and responsive. Her intelligence and skill were obvious assets. Amy is gracious and prompt in all of her
communications, both with me, lenders, buyers and workers.

Amy Cimetta defines professionalism.

Wendy Treese

01:15 31 May 24

Amy is a true expert at her trade. She walked us through the process step by step and was there for questions day and night, 24-7. She gave great guidance and top-notch recommendations. She never pushed us. Instead, she would share information and let us make the final decision. After her recommendations on house repairs, staging and listing price, we got an offer the first day the house was listed!! Once we accepted an offer, the whole process was done in less than 30 days! I recommend her 100%.

Shirley Albert Pressman

23:22 24 May 24

I had the pleasure of working with Amy for nearly two years while attempting to purchase a home long distance in a highly competitive market. During that time, Amy viewed countless properties offering her insight on its potential based on her knowledge of the criteria that was most important to me. She helped me navigate this difficult landscape and ultimately obtain a property that fit most of my requirements. I valued her commitment and knowledge. She became not just my agent but a friend!

John Graves

02:44 22 May 24

Amy was vey helpful, patient for my first time buying a home and would definitely refer her.
Thank you Amy !!
.

Stacie F

02:44 09 Feb 24

Six years ago, Amy Cimetta helped us find a beautiful home in Manhattan Beach to move my parents a short walk from my home. My parents were extremely particular as they were leaving their home of 50 years and wanted the "new" home to feel like home. Amy found the perfect home for them! Amy assisted in selling their home in Westchester, getting multiple offers over asking price the first weekend.
Recently, my parents decided to move into assisted living so Amy helped us list and sell their beautiful home in Manhattan Beach. In a slow market, we received an offer close to asking within a few weeks. Amy knows the market, has great advise on how to best prepare a home for sale, has dependable and reasonably priced referrals, and keeps the process moving smoothly. She truly cares about her clients and I couldn't have done this without her! I highly recommend Amy and definitely wouldn't make a move without her!

Anuradha Jeste (Anu)

19:28 07 Feb 24

Last year in August, we listed our house for sale. Within 24 hours, we had three offers, all at asking price. Of the three, Amy’s client finally won the bidding. It took us about six weeks to go through the paperwork, financing for the buyer, and all the inspections.
Throughout this process, Amy visited our property 8 times. She was there for every inspection, she scrutinized all the reports, made up her own lists of improvements/fixes we needed to do, worked with us and our contractors to make sure they were completed, and checked them again. She was always punctual, courteous, helpful and very thorough. The buyers entrusted her completely and focused their time and efforts in planning changes they wanted to make after getting the possession of the property.
We have bought and sold 6 properties in 5 states and have dealt with over 100 real estate agents in the past 45 years. I must say Amy is truly an exceptional, hard-working agent and is a gold standard in an industry that is full of mediocre people who have very little or no experience, training or the desire to help their clients. Amy’s professionalism, attention to detail, thoroughness in everything she does, and commitment to doing the very best for her client stands out as the qualities you look for in any profession, but they are so rare in the real estate business. She is the most helpful and caring person even when she is representing the “other” party.

Celia Silver

20:38 29 Jul 22

Amy was highly recommended to us by family members to handle the sale of an apartment building, and from the first visit with Amy, we knew we were in good hands. Amy is a fantastic agent. She’s an absolute professional; exceptionally smart and knowledgeable, and has a delightful personality. Amy is extremely dependable and dedicated, and was very responsive to all of our questions and concerns. Amy did a stellar job negotiating with multiple potential buyers in a very short period of time. She made the entire process go as smoothly and as stress-free as possible. Amy was a pleasure to work with, and we truly appreciate all of her hard work and expertise in getting us a terrific result on our sale. We cannot recommend Amy highly enough to anyone buying or selling a property.

Allison Boiles

14:10 04 Jul 22

10/10 (can I give 20/10?!?) would recommend Amy to anyone looking for a home, especially first-time buyers!! My husband and I were extremely new to the process and overwhelmed at the prospect of purchasing something, but Amy made our lives easier by clearly explaining every step and answering every question. She is reliable and will work hard for you, making herself available on your schedule. She has your back and has such great insight and expertise in this field. Work with Amy! You won’t regret it.

JoAnn Noonan

14:11 28 May 22

We are currently in a real estate transaction using Amy .She has been incredibly helpful, skilled, , stunningly knowledgable as well as patient with questions. She has walked us through each stage , Amy is tremendously easy to work with, .In addition to her expertise, a sense of humor balances her admirable work ethic . For any sticking point in the process she can easily walk you through the pros and cons .In addition to Amy , her referrals for adjunct people ( for us 10:31 company , agent in a different city etc.,) have been spot on - professional helpful look no further people. . I would use her again in a heartbeat.

Fabio Semperlotti

18:18 15 Mar 22

Amy is truly an exceptional agent. She is extremely knowledgeable, professional, patient, very responsive, and truly cares about you and your needs. Never leaves any doubts or questions go unanswered. She helped us buying a home in Redondo Beach in the midst of a very difficult market. We would have not been successful if it wasn't for her tenacity and professionalism. Hands down the best agent we ever worked with.

Larry George

20:06 05 Mar 22

Amy has been terrific, helping us buy and sell real estate in the Redondo Beach area. She is very responsive, high energy, honest, and caring. She also is very charitable and involved in the community. She is highly recommended!

Karan Gulati

22:59 15 Oct 20

Amy was awesome. She made buying our home feel very comfortable and safe. She made herself available when we needed her, went beyond the call of duty to introduce new ideas and follow up on them, and even helped us save money! All while being respectful of our privacy and gentle in her approach. She always put the relationship before the transaction. We were very lucky to have been referred to her!

If Your House Burns Down, Do You Still Have to Pay Your Mortgage?

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