Legal Question in Real Estate Law in Florida

Yes. You borrowed the funds under the terms and conditions of the mortgage and note. Unless the mortgage and note specifically state that you would not be responsible under such circumstances, you would still be responsible for what you agreed to in the mortgage and note. It would be unusual for the mortgage and note to include a waiver of payment under such circumstances. Think about it, how would the lender know that you didn't cause the fire to get out from under the loan obligation?

If you can justify financial hardship, you may want to approach the lender to see if they will waive it because of your financial situation. Or, ask them to refinance the loan under more favorable terms.