People should pay the mortgage of the house which is broken in earthquake

Well if the insurance won't pay for it then they still have to pay for it. Most morgage companies have a little leway for desastors like this in that you may have a couple months before you have to pay again. Its not free just a deferment.

I know here if you don't have flood insurance which is seperate from regular home owners insurance and your house floods the insurance company won't pay for it. So maybe if they need a seperate insuance for earthquakes and don't have it then the insuarnce company won't pay for it.

I think there needs to be more laws to protect the home owner.

If they pay on a mortgage for a house that doesn't exist any more, then, they will also have to pay rent or a mortgage on one that does. Can very many people afford to double pay like that?

In my country, the insurance usually pays. They try to find some way out of it, but they usually have to eventually. Some people can't afford to pay insurance. When they have a house that burns down, then the neighbors help them rebuild it, take up a collection of money and donate time. Sometimes the Red Cross helps them get clothes and so on. But when a disaster is huge, usually the government has to help.

I hope somehow they get help. Take care and I'm very sorry for everyone's losses in your country because of the Earthquake. I hope something can be done to help them.

Hi nini168! Some of the insurance companies here in our country also do not include earthquakes or natural disasters and war; so people would not be able to get money if their properties are damaged by such reasons or force majeure. However, banks and real estate should be giving considerations for people who are victims of natural calamities or wars. The government in my opinion should take steps in helping the victims on how they can rebuild their lives again and not allowing other agencies such as real estate and banks to still squeeze them dry. If I were one of the victims, I wouldn't pay the mortgage, they can foreclose it if they want to for all I care because what benefit can I get from it anyway.
Take Care and God Bless! Happy Mylotting!

It must be terrible to lose your house and then to be told you must pay your mortgage. I think it would be the last thing you think about when you have lost everything and may also have lost loved ones.

How will the mortgage companies get their money if someone refuses to pay. They can't repossess the house because it no longer exists. They could only take the land it had been built on which the owner may no longer want anyway.

I am sorry but this is WRONG WRONG WRONG...

I ahve to say right now that here in the states that is why we have insurance, and when an earthquake or flood damagae happens then you can claim it on your policy, but to expect you to pay for a mortgage of a house you can't live in and not be able to build again, um I'm srroy its something I just don't agree with .

I think someone needs to step up on this one.

Mooch

Nini, we live in the real world. In an ideal society it would be great for the mortgage holder to say, "Gee, we're sorry about your misfortune, so don't bother making payments."

But this is the real world where companies are in business to make money, not to care about people's misfortunes.

Your mortgage holder want its money.

Your insurance company can try to excuse itself from responsibility ... but in MY opinion, you PAY for that insurance and you should be ENTITLED to the coverage it offered when you took out the policy.

I think (this is me, personally) that your mortgage holder is heartless, yet it's a business.

I'm afraid you'll be stuck making those mortgage payments ... unfair as they may seem (to me too).

That is awful. I think they should be free and clear of the mortgage debt if the government or insurance company is not going to help them rebuild. they no longer have the house to pay for. If the insurance company makes a settlement with them, then, yes they should take part of that money and pay that home off and use the rest for a new home.

The majority of insurance companies in most countries will not insure against earthquakes or other natural disasters, which they often refer to as an act of God. Whether it seems fair or not it has been agreed before the mortgage was taken out, so there is no cause for complaint.
As for paying the mortgage, of course it has to be paid. They have borrowed the money and therefore should repay it.

what can the bank do in case no payment is made? they can foreclose the house which is no longer there. but the question is, can one get a loan to build a new house? i hope they can, or there'll be lots of homeless from the quake, unless there are enough available and affordable houses to rent. and i also hope work is not affected..

First of all, let me offer you my sincere regards and condolence to your country's recent disaster in Sichuan.

Now, as you are aware that there are clauses in all the undertakings here as you mentioned i.e. the mortgages and insurances, I just need to emphasize the need to really read along the fine dotted lines in the stated conditions and coverages. I do agree that most insurance does not pay for damages caused by natural disasters, however, they are not completely without. There are such coverages except the premiums will be much more expensive.

As for the mortgages, it is a stated fact that you will need to continue paying as this is an obligation between the home owner and the financial institution. It is a legal issue totally, however, one may take up an insurance to prevent loosing your home in the event that the bread winner is incapacitated from fufilling his/her instalment obligation.

I am sorry that the plight may have befallen to your friends and love ones but that is the law. I know that it will be a difficult time now, however, the rebuilding of your country is already assured by your government and I believe that if you could just refer to the relevant authorities for help in financial and/or welfare support I am sure that they will be available.

Also, I am sure that a meeting with the financial authorities after the rescue and recovery period will be of help to map out a feasible repayment plan. Just remember that all matters can be solved, we just need to take things 1 step at a time.