insurance check applied to balance by bank

[ARKANSAS2006]

There was a fire in my rent house---bank forced fire insurance. when the bank received the check for damages they applied it toward the balance---they said they had that option. of course, my balance has been lowered, but have no funds for repairs and must get insurance but can't until repairs have been done. the city is after me to repair. I am putting it for sale as is but until it sells----what to do? was the bank right in doing that?

[Alice Dodd]

Who was the named insured on the policy? And what does the policy and your loan docs say? You probably need to consult an attorney on this one.

[ARKANSAS2006]

the check was made out to the bank, but i am being charged for the premiums. i really don't have a problem with how they did this except if the city doesn't work with me. just thought i would get a jump on it in case the city gives me problems.

[Alice Dodd]

Most zoning laws allow you to replace what was there if the property is destroyed, although you probably will have to build to the current building code.