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If a Condo Association Decides Not to Rebuild ....

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Question: 
When financing a condo unit suppose the entire building is wiped out by a flood and insurance does not cover mortgage balance. Suppose the association decides not to rebuild but to sell very valuable land. Can the mortgage holder get to customer's portion of land sale proceeds directly as a result of the mortgage?
Answer: 

This would be a question for your attorney. I'm sure there will be legal proceedings required to do so. Our condo rider addresses what happens with the distribution of insurance proceeds if they are distributed in lieu of restoration or repair, but it does not address the property.

First published on BankersOnline.com 11/15/04

First published on 11/15/2004

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