Legal Question in Banking Law in Utah

Morgage Revocation after Fire

My brothers house was completely destroyed by fire from a wild fire. The insurance company is going to cover all costs associated to rebuild the house and compensate for the contents. Because the house is a modular house, a serial number was recorded on the mortgage. The mortgage company wants to terminate the mortgage since the replacement will have a new serial number. This will cause him to refinance at a higher rate and pay the associated closing costs. No such serial number would exist if this had been a ''stick-built'' house. Is this legal and if so, are there any legal recourses. Thank you.


Asked on 9/29/05, 9:32 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Morgage Revocation after Fire

If the house is rebuilt then the sames serial number can be used. If the house is replaced then there is a new serial number and the insurance company may have the upper hand - you would have to read the terms of the mortgage agreements to know for sure. Check with the rebuilder to see if they can use the same serial number on the new building.

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Answered on 9/30/05, 10:49 am


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