When looking at the options to rebuild or buy a replacement property, the examples seem to assume there is not an existing mortgage on the property.
I have only owned my property for 3 years, and I have a large mortgage. It is roughly equal to the rebuild cost. Between permits and construction, it will take about 2 years to rebuild my house. I cannot make the mortgage payment and pay rent for 2 years, so I would like to purchase an existing home.
Logistically, how does this work? Can I use the insurance money directly to a new home? If I need to payoff the existing mortgage, there will be nothing left (not even a down payment). Mortgages are expensive, and it takes so long to build in California. I don’t understand how to rebuild here.