N
ngh
Guest
(Virginia)
I had a claim against my homeowners insurance policy that the insurance company paid promptly. The check was made payable to me and my mortgage company, and was issued before the work was completed. When I got the check, I contacted my mortgage company to figure out how I was going to get the money to the contractor. They sent me a letter instructing me to endorse the check, then send it off to the mortgage company, along with a copy of the contract. They also needed the contractor to sign a standard mechanic's lien waiver. Upon receipt of all this stuff, they would send along someone to inspect that the work was actually done, then release the funds.
Making a long story short, the mortgage company cashed the check six months ago. They don't like the contract we signed with the contractor (it doesn't have the total $ amount in the contract). And the contractor took forever to sign the mechanic's lien waiver (and when they did, they used their own form, not the mortgage company's). So, although the work has been at least substantially complete for months, the mortgage company has yet to schedule the inspection, and hasn't released any of the insurance proceeds.
The contractor has been very patient about not being paid, but this probably won't go on forever. And the mortgage company has been earning hundreds of dollars of interest with the claim payment they deposited.
Anyone have any idea what rights the mortgage company has to continue to hold up this process? And why they should get to keep the interest on this payment (I figure it either belongs to the insurance company, or to me, since I pay the premiums on the HO policy.)?
I had a claim against my homeowners insurance policy that the insurance company paid promptly. The check was made payable to me and my mortgage company, and was issued before the work was completed. When I got the check, I contacted my mortgage company to figure out how I was going to get the money to the contractor. They sent me a letter instructing me to endorse the check, then send it off to the mortgage company, along with a copy of the contract. They also needed the contractor to sign a standard mechanic's lien waiver. Upon receipt of all this stuff, they would send along someone to inspect that the work was actually done, then release the funds.
Making a long story short, the mortgage company cashed the check six months ago. They don't like the contract we signed with the contractor (it doesn't have the total $ amount in the contract). And the contractor took forever to sign the mechanic's lien waiver (and when they did, they used their own form, not the mortgage company's). So, although the work has been at least substantially complete for months, the mortgage company has yet to schedule the inspection, and hasn't released any of the insurance proceeds.
The contractor has been very patient about not being paid, but this probably won't go on forever. And the mortgage company has been earning hundreds of dollars of interest with the claim payment they deposited.
Anyone have any idea what rights the mortgage company has to continue to hold up this process? And why they should get to keep the interest on this payment (I figure it either belongs to the insurance company, or to me, since I pay the premiums on the HO policy.)?