What is the name of your state (only U.S. law)? Oregon.
We have a RM from 2007. It is more than the house is worth but Fed insurance will take care of that, should we move. We live in a rural, wooded subdivision and if there is a serious fire and our home and 2.5 acres are totally burned up, we don't think we would like to rebuild here. It would look like the surface of the moon with burned tree stumps.
Our H/O policy says we can cash out and rebuild/buy/rent elsewhere. We might do this. Smaller house or condo or ???
H/O policy rebuilding costs might give us 1/2 of the RM balance. What comes next? Have not discussed with RM lender. Can't quite think this thru. Any help/suggestions/comments?