What is the name of your state? Louisiana
I recently refinanced my property. My homeowner's policy had lapsed, but my flood policy was still in effect. Before going to closing, the loan officer requested a copy of the declaration page, so I contacted my insurance agent and she faxed it to him. The loan officer assured me that he would verify the policy and have the figures changed--as well as have his company added to the policy for claims settlements. Meanwhile, he provided me with a couple of company's names that had worked up "binders" or homeowner's insurance quotes. While in the process of trying to secure homeowner's insurance, Hurricane Katrina hit. Thank God for the flood insurance. However, when I called to file a claim, I was told that the mortgage company had never called in any information, and that the policy amount had not been increased. OK. In hindsight I now realize that I should have been persistent finding out who had to send in what to whom, and I did call and give the insurance company a heads up before closing. So, after hearing that alarming news, I called the mortgage company and asked why they had not verified everthing with the insurance company (the policy would have been significantly increased due to refinancing and remodeling--documentation/inspection would have been required), I was told that the loan officer had not input the information in the computer as of yet (even though closing was two months ago) and that there was nothing that could be done. OK. I filed my flood claim anyway, explained to the insurance company what had happened, and gave them the new mortgage company's information. Low and behold, a claim check was cut and made payable to me AND the former mortgage company. I called the old mortgage company and asked what to do, and was told to send the check in and that they would endorse it and mail it back out to me. So, my question is this:
If the claim settlement check was made out to me and the former mortgage company, and the former mortgage company endorses the check and sends it back to me, am I required by law to send money to the new mortgage company? Keep in mind that in November I am expected to begin making monthly payments (hurricane grace period over), and that I fully intend on restoring the property.
I recently refinanced my property. My homeowner's policy had lapsed, but my flood policy was still in effect. Before going to closing, the loan officer requested a copy of the declaration page, so I contacted my insurance agent and she faxed it to him. The loan officer assured me that he would verify the policy and have the figures changed--as well as have his company added to the policy for claims settlements. Meanwhile, he provided me with a couple of company's names that had worked up "binders" or homeowner's insurance quotes. While in the process of trying to secure homeowner's insurance, Hurricane Katrina hit. Thank God for the flood insurance. However, when I called to file a claim, I was told that the mortgage company had never called in any information, and that the policy amount had not been increased. OK. In hindsight I now realize that I should have been persistent finding out who had to send in what to whom, and I did call and give the insurance company a heads up before closing. So, after hearing that alarming news, I called the mortgage company and asked why they had not verified everthing with the insurance company (the policy would have been significantly increased due to refinancing and remodeling--documentation/inspection would have been required), I was told that the loan officer had not input the information in the computer as of yet (even though closing was two months ago) and that there was nothing that could be done. OK. I filed my flood claim anyway, explained to the insurance company what had happened, and gave them the new mortgage company's information. Low and behold, a claim check was cut and made payable to me AND the former mortgage company. I called the old mortgage company and asked what to do, and was told to send the check in and that they would endorse it and mail it back out to me. So, my question is this:
If the claim settlement check was made out to me and the former mortgage company, and the former mortgage company endorses the check and sends it back to me, am I required by law to send money to the new mortgage company? Keep in mind that in November I am expected to begin making monthly payments (hurricane grace period over), and that I fully intend on restoring the property.