I received insurance money to repair vandalized home, but is short $8,000. Can't afford repairs-what to do?

The investment home’s value in Atlanta sunk from 5,000 to just over 0,000 (estimated) before the vandalism. It’s a negative amortization mortage, which means my principal increases every month. It started out at 9,000 on this rehab, and is now up to 6,000 – monthly payment of 21, but max rent of 0. I had already warned bank before vandalism that I might not be able to make payments, and have hired a non-profit negotiator to request deed-in-lieu of foreclosure or short sale (which is tougher now, since the vandalism). My insurance company agreed it was ,000 in damage but then claimed depreciation on an actual cost basis of ,000. Unfortunately, when I deposited the funds, creditors took out a chunk of it through automatic payments, so I don’t even have the full amount now. Other investors advise to not throw bad money after good, but pay off other debts, and let the property foreclose. Can the bank force insurance co. to pay more funds? What are my options?

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