House burned down, mortgage holder will not settle

[Rubydog3]

Hello, purchased house in november 99 and burned down in January 2000. the owner was holding mortgage and I allowed him to keep some property in the other apartment untill June of 2000.because he was holding the mortgage I received insurance settlement check with both of our names on it.He is demanding I give him money for the property he lost in fire, i stated to him I was not responsible for his property but he will not settle and sign the check unless I give him money. also the fire started in his apartment from a coffe maker ,he did not live in the house. I am from NY and it seems to me that this is extortion,people are telling me to pay him and selle this as I am lossing alot of interest on my money also.

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[Tracey]

Hmmm, his negligence starts a fire that burns down your house and he wants you to pay to replace the stuff he was storing there? Cheeky! The bank was correct to make the check out to both you and the lien holder. However, he only gets enough money to discharge the lien. If he wanted his stuff protected from fire, he should have purchased renter's insurance or made sure his homeowner's insurance covered stored stuff.

Furthermore, since his negligence started the fire, you get to sue him for the entire cost of the house & all the possessions you lost!! Inform him in writing (certified, return receipt), that he is acting in bad faith by demanding any more than the lien amount, and that you will sue him and request (and receive) punitive damages. Plus costs. Plus attorney fees. (Don't tip your hand about suing him for starting the fire yet.)

If the letter doesn't work, sue him to partition the money. The court will determine how much of the check he gets and how much you get. Use the money to sue him. Alternatively, you could provide the insurance company with an accounting of the mortgage terms and your equity & request they issue separate checks. I don't know if they will, but it's worth a try.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.