[debidibly]

OK, tax implications aside. I am wondering if it is a bad thing if you pay off your mortgage and then later something catastrophic happens like a hurricane or a sinkhole collapse.

The reason I ask is because I've heard stories that if your house is already paid off you would be ineligible for certain financial considerations (special loans, grants, etc) if something like a hurricane or flood wipes you out and your insurance itself doesn't cover you. Yes I have flood insurance but I also know that so did some of the people affected by Katrina and they're still not paid. I also know flood insurance has it's limits. I've also heard that if you have a sinkhole many times the insurance company fixes it and pays off the mortgage because you won't ever get sink hole insurance again.

Not sure if any of these things are old-wives tales or not but if anyone has any info on where I could find this info IN WRITING I'd appreciate it.

[MrTudo]

Might not make sense economicaly but it sure is a good feeling to know that you CAN write a check and pay it off.

[firemed]

Originally Posted by debidibly

OK, tax implications aside. I am wondering if it is a bad thing if you pay off your mortgage and then later something catastrophic happens like a hurricane or a sinkhole collapse.

The reason I ask is because I've heard stories that if your house is already paid off you would be ineligible for certain financial considerations (special loans, grants, etc) if something like a hurricane or flood wipes you out and your insurance itself doesn't cover you. Yes I have flood insurance but I also know that so did some of the people affected by Katrina and they're still not paid. I also know flood insurance has it's limits. I've also heard that if you have a sinkhole many times the insurance company fixes it and pays off the mortgage because you won't ever get sink hole insurance again.

Not sure if any of these things are old-wives tales or not but if anyone has any info on where I could find this info IN WRITING I'd appreciate it.

I don't have a mortgage anymore. But I have insurance. I don't have to but I do. As far as ineligible no, if you meet the guideline you will get the same help as the others. Now if its a 2nd home or an investment I don't think you will get the FEMA help. Without your own insurance you would be stuck in that case. As far as taxes the rates are too low to make it worth it IMO. Sinkholes are all over Florida here is a site to help you. DRAM, Florida Geological Survey - Frequently Asked Questions