Desperate owners burn homes

[Ceicei]

Apparently some homeowners facing foreclosure feel burning down their homes is a viable option...

http://www.cnn.com/video/#/video/us/2008/03/14/lawrence.burning.homes.cnn

Since I cannot hear what is said, I am trying to find other written sources that will explain this thinking... Why would someone want to burn down their own home? Seeking for insurance?

- Ceicei

 

[MJS]

Apparently some homeowners facing foreclosure feel burning down their homes is a viable option...

http://www.cnn.com/video/#/video/us/2008/03/14/lawrence.burning.homes.cnn

Since I cannot hear what is said, I am trying to find other written sources that will explain this thinking... Why would someone want to burn down their own home? Seeking for insurance?

- Ceicei

The only thing I can think of is the, "If I can't have it, nobody will" way of thinking. Of course, if arson is suspected, it'd be interesting to see if the home owner actually gets any money. I mean, the home is going to be foreclosed and suddenly it goes up in flames. If that doesn't raise a few red flags, I don't know what does.

 

[Brian R. VanCise]

The only thing I can think of is the, "If I can't have it, nobody will" way of thinking. Of course, if arson is suspected, it'd be interesting to see if the home owner actually gets any money. I mean, the home is going to be foreclosed and suddenly it goes up in flames. If that doesn't raise a few red flags, I don't know what does.

Ditto I do not think this is for the money but more to keep anyone else from having it. Still you would have to think that people would be worried about prosecution. However, desperate people sometimes do desperate things.

 

[tellner]

The most common cause of mysterious fires is the heat of friction between the mortgage payment and the insurance policy

 

[Kacey]

Apparently some homeowners facing foreclosure feel burning down their homes is a viable option...

http://www.cnn.com/video/#/video/us/2008/03/14/lawrence.burning.homes.cnn

Since I cannot hear what is said, I am trying to find other written sources that will explain this thinking... Why would someone want to burn down their own home? Seeking for insurance?

- Ceicei

The video stated that the two people highlighted had both burned down their homes, hoping insurance would pay for them, rather than face foreclosure. It also stated that this type of crime is increasing - in Colorado Springs, the home of the man who burned down his house on the day he was to be evicted, there were 14 such fires in the last year, up from 7 the previous year. The video also noted that people who are convicted of arson in such cases still owe the mortgage lender for the home, as insurance will not pay in arson cases of this type.

 

[terryl965]

The only thing I can think of is the, "If I can't have it, nobody will" way of thinking. Of course, if arson is suspected, it'd be interesting to see if the home owner actually gets any money. I mean, the home is going to be foreclosed and suddenly it goes up in flames. If that doesn't raise a few red flags, I don't know what does.

I would have to agree

 

[shesulsa]

Burning one's own residence (or business) to claim the insurance money used to be called "Jewish Lightning" - an offensive term to describe a way out of serious debt or into serious money.

The real estate market is a buyer's market right now because few are buying. The value of homes is starting to drop, some homes are being foreclosed upon because they can't sell in time. And believe me - if it ever looks like you're going to have to lose your home through foreclosure - SELL IT. Problem is, lots of people have been trying but there's no one to sell to anymore.

All the "creative financing" options that have been thrust upon people who really shouldn't buy homes (due to their financial position at the time) have exhausted not only the pool of viable purchasers but a whole lot more people as well!

Foreclosure can keep you out of not only home ownership for a while but even a good rental - it is a spot on your credit report that doesn't go away soon.

Most folks think they can fool investigators into thinking it was an accidental fire - but arson experts have been looking at this kind of thing for YEARS. Arson does not bring about insurance money nor does it sway the mortgage.

 

[elder999]

Most folks think they can fool investigators into thinking it was an accidental fire - but arson experts have been looking at this kind of thing for YEARS. Arson does not bring about insurance money nor does it sway the mortgage.

Kind of depends upon the professional competence of the arsonist and the investigator, though.....people collect insurance from arsons that were determined to be accidental every year.