I need help. My wife and I are in the process of buying out her brother from a family lake house, and the only way we can afford to do that is to take a loan/line of credit against the house. 1 of the requirements though is the house needs insurance before we can get the loan. Problem though is we have had 3 appraisals done and all three have called the house a tear down. The property it sits on though is worth about $175k. The reason the house is considered a tear down is because the foundation is sinking, we just don't have $60k to fix it right now, or $200k to just build a new house. Questions Can I get home owners insurance on a tear down house? Can I get a loan against the land instead? Can I get some type of limited liabilty to help with the loan application? any help or suggestions will be greatly appreciated. Thanks Frank
State: 
Michigan

About The Expert

Amy Bach

Amy Bach has been a professional advocate for insurance policyholders since 1984 and an attorney since 1989. She co-founded United Policyholders in 1991 and serves as the organization's Executive Director and primary spokesperson; shaping and overseeing the Roadmap to Recovery™, Roadmap to Preparedness, and Advocacy and Action programs. She is a nationally recognized expert on insurance claim and legal matters; frequently interviewed in print and broadcast media, and the author of numerous publications including "The Disaster Recovery Handbook", "WISE UP: The Savvy Consumer's Guide to Buying Insurance" and consumer tips and guides in the UP Claim Help Library.  Recognized by Money Magazine as a Money Hero, Bach is in her eighth consecutive term as an official consumer representative to the National Association of Insurance Commissioners, and is a member of the Federal Advisory Committee on Insurance.