A roof in good condition adds to a property's overall value.
If your home is in danger of going into foreclosure and you know its roof needs repairs or replacement, you may be wondering if it is worth it to fix it before the home is sold at auction. After all, you may not be able to keep your home, so making repairs on something that could be taken away might not seem to make a lot of sense. If a default, or deficiency, judgment is likely, however, repairing your roof actually makes a lot of sense. A deficiency judgment is a court-ordered reimbursement for the difference between what a home sold for at a foreclosure auction or after market as a Real Estate Owned Property (REO), and the original mortgage balance. This amount follows the foreclosed owner for ten years. For example, if your mortgage balance is $200,000 and the home sold at auction for $150,000, the lender can pursue you, as the homeowner, for a default judgment of $50,000. A roof repair increases a home's overall value, decreasing the default judgment in some cases. Does this Spark an idea?
Instructions
1. Contact your homeowners insurance company. Most roof damage resulting from weather can be fixed by homeowners insurance companies for a fraction of the cost of fixing it yourself.
2. Schedule an adjuster's visit to your home for roof assessment. The insurance adjuster can help you start to file a claim if he or she deems the damage is covered under your policy, in which case a roofing repair company can come make the necessary repairs.
3. Pay your homeowners insurance deductible to your insurance company when the work on the roof is completed. Keep the receipts for the work done and an itemized copy of the extent of repairs. If a judgment is filed against you, you can use the receipts to contest the amount of the judgment based on the value of the house with the repaired roof.
4. Obtain a free estimate from a local roofing company if your homeowners insurance company will not pay for the repair. Find out how much it would cost to repair your roof, and if you can, get the repairs made before foreclosure proceedings begin.
Tags: homeowners insurance, home sold, insurance company, your home, your homeowners, your homeowners insurance, default judgment
