Implicit in your post is the fact that there was 100% equity by the owner. I wonder if in fact the multimillion $$$ homes were not in fact mortgaged and it is the banks who might end up with the loss.
The fact the owner has Money does not preclude leveraging with a mortgage
The fact the owner has Money does not preclude leveraging with a mortgage
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Having never gone through it, what happens to a mortgage if a home is 100% destroyed.
I assume the borrower still owes the money, but could they just quit paying and the bank takes back the lot? Or, can it be clear via bankruptcy?
Maybe one of the many more knowledgeable Freepers knows the answer.