Looking for input and maybe options I have considered, my parents recently discovered their downstairs has a significant amount of mold due to a pipe leak behind the refrigerator. It's likely 80% of the downstairs flooring will have to completely replaced along with kitchen cabinets, bathroom vanity, and some walls. It's pretty extensive. Estimate was received from a contractor we trust that it's probably going to be 25-30k.
Homeowners insurance has denied the claim because they say it's been that way a long time. They are contesting that, but I am not optimistic. My guess it's been like that a month or two.
House is probably worth 100k once the issue is fixed. They owe 62k. I am worried the estimate may be a bit low because things always are more expensive than you think and we don't know the whole extent of the damages.
Options: 1) Take out a Heloc to pay for the repairs. Their credit isn't the best and have had a bankruptcy about 5 years ago...I am not even sure if they would qualify. 2) Walk away and let it go to foreclosure. Rent a place instead. 3) Fix it with a private loan (if they qualify and at a high rate)
Are there any other options I am not thinking of?
Submitted June 09, 2017 at 07:40AM by Jhp8 http://ift.tt/2r7PMUz personalfinance
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