What happens to your mortgage if your house is destroyed?

If your house burns down, do you still pay the mortgage? Generally, yes, you keep paying. While you can take your insurance payout and move to a new house, you still have to pay off your mortgage on the house that burned down. You may be able to sell your property for enough money to pay off your mortgage on the burned house, but there are no guarantees.

If you decide to rebuild, you continue paying your mortgage while your home is under construction or renovation. 

Your insurance policy may cover your mortgage payments during this period. Some lenders offer mortgage forbearance, which is a temporary pause in required payments due to hardship, such as when your house is burned down. Your lender may modify your loan terms, such as lowering your interest rate or extending the length of your loan to reduce the monthly payments. You might be able to re-amortize your loan based on your current balance.

Contact both your insurance company and mortgage company right away to see what options are available. You’ll have more flexibility and peace of mind to make the best choices as you rebuild your life.

If your house burns down, do you still own the land?

Fire may destroy your home, but it doesn’t destroy your property rights. You still own your land after a wildfire. Your property rights can be your foundation for rebuilding, selling, or starting new somewhere else. If you have a mortgage, you will still have to continue making payments. Your ownership, however, gives you options and control over your next steps.

How long does it take to rebuild after a wildfire?

It can take years to rebuild after a wildfire. Debris removal and the house fire clean-up aren’t just for your house, but for a neighborhood or whole town. Many people may file permits at once, overwhelming the system. You’ll be competing with everyone else for contractors and building materials. If you don’t have enough insurance, your situation can be even worse.

When rebuilding, make the investment worthwhile by constructing a fire-resistant house. The right designs and materials make your house more resistant to wildfire. Consider putting in an automated home defense system.

Types of damage you can expect

Nothing can really prepare you emotionally for what you might see in your neighborhood or at your house after a wildfire. You may wonder how long it takes after a fire to move back. It all depends on the condition of your house. Here are common types of fire damage you may find after a wildfire:

• Structural damage. Heat can singe, melt, distort, and weaken parts of your house, with damage that extends far from the flames themselves. Smoke from a fire can penetrate deeply into the structure of your house and belongings, making it difficult to eradicate. Soot can leave an oily and toxic residue on any surface.
• Water damage and flooding. Water can cause nearly as much damage as the flames. It can weaken structures, ruin belongings, and promote mold growth, which poses health risks and can require costly cleanup.
• Loss of vegetation and destabilized land. Wildfires destroy everything in their paths, including trees, bushes, plantings, and lawns. Without roots to hold soil in place, hillsides and yards become vulnerable to erosion and landslides, especially during the next heavy rain.

How to clean smoke damage

Smoke damage is one of your toughest challenges in a house fire cleanup. Flames may not have come near your house, but smoke can deeply penetrate your structure and everything in it. Tiny toxins can embed themselves into walls, insulation, carpets, clothing, walls, vents, and ducts. Smoke bonds to many materials, leaving a lasting odor and health risks. These tips will help you safely deal with smoke during your after-fire cleanup, allowing you to save as many things as possible.

• Take care with soot. Soot can be highly toxic and can easily damage cleaning equipment. Rent heavy-duty HEPA equipment made for this job or hire a professional to remove as much soot as possible.
• Bring in fresh air. Once soot, ash, and loose debris are gone, it is safe to get fresh air moving through your home. Using fans and opening windows can help remove odors, dry things out, and prevent mold growth. 
• Wash walls with care. While you will want to get grime off your walls, don’t use harsh cleaners or vinegar, as these may damage your drywall. Warm water and mild soap are best. Dry the surface with a clean cloth to speed the process. It may take a long time to air-dry your walls, which risks the growth of mold. Once the surface is fully clean and dry, cover it with a primer to seal in stains and odors. Then you are ready to paint.
• Cleaning textiles. Bedding, clothing, rugs, and curtains hold in smoke. Wash them in regular detergent and put them through several cycles. For delicate items, a professional cleaner experienced in removing smoke from textiles is your best bet.
• Wipe down appliances and electronics. Use a vinegar solution or an enzymatic cleaner formulated to remove smoke to wipe down hard surfaces. Get inside appliances, and clean all cabinets and contents to remove the smoke that has deeply settled in.
• Deep clean your HVAC. Don’t run your furnace or air conditioner until a professional with experience dealing with smoke has fully cleaned the units and ductwork. You don’t want to blow particles and toxins into your home. Get all moving parts cleaned and inspected so you don’t risk soot causing damage to them.
• Get rid of food and medications. Smoke and heat can damage food, even canned food. It is safest to throw away food, beverages, medications, and even toiletries that have been exposed to fire or smoke.

Deciding what to clean, keep, or let go

Deciding what to keep and throw away can be difficult. You may have emotional attachments to some things. In the face of loss, some people try to hang on to as much as possible. Others deal with the stress by just throwing out everything. 

You don’t have to go to either extreme. You can make careful decisions that you won’t regret by assessing each item with practical considerations:

• Safety: Is the item safe to keep and use?
• Cleanable: Can the item be cleaned or restored?
• Functional: Does it still work properly, and can it be used for its intended purpose?
• Cost vs. value: Would it cost more to clean and repair than to buy it new?
• Covered: Will insurance pay to replace the item?
• Emotional value: Does it have deep sentimental value, like photos, heirlooms, or children’s keepsakes?

Weigh each item against the considerations above to decide what to keep, what to clean and repair, and what to get rid of. Check with your local waste management department to determine the best way to dispose of fire-damaged items.

Make a list of the belongings that you must discard and replace. Record their value, include a detailed description, and add several photos of each item. If you have receipts and photos of your valuables from before the fire, making claims on your wildfire insurance will be much easier, with the ability to be adequately compensated for your losses.

Supporting your well-being after a wildfire

Experiencing a wildfire and having your house burned down can be a highly traumatic event for you and your family. It is more than a financial setback; you’ll be dealing with serious emotional issues around loss of your home, a disrupted life and loss of stability.

You don’t have to go it alone or tough it out. You might feel like you are handling things well, only to have problems come up much later. Realize that you and your family have gone through a lot and healing takes time. Don’t neglect your emotional well-being. You need all your strength to get through the aftermath of a fire.  Asking for help is not a sign of weakness.

Getting counseling to help you and your family process the trauma. Emotional support is vital in rebuilding and recovering. Community resources and support systems are available. Keep tabs on your own ability to cope and watch children, other family members, and even your pets for signs that they might need a bit of help in coping.