house burned down…

can anybody give me advice- borrower wants to refi to get out of a 1 yr ARM @ 8%… the problem is that the house burned down. they bought it a year ago- it was a new construction. are there or what lenders will take the old appraisal or how does one approach a situation like this?

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One Response to house burned down…

  1. Cindy says:

    Try going to the insurance company to get the money they’re owed for the house burning down to pay off the mortgage. Then they can get a new home and a new mortgage without being a 1 year ARM! Or, did they forget to pay their insurance premium??