Insurance Claim and Mortgage Company

[yellownotebook]

What is the name of your state? Ohio

I recently filed a claim for storm damage to my house. The claim provides for repairs to both the roof and siding. However, the claim check was large enough that my mortgage company is also on the check. They want to put the money in escrow and release it in thirds as work is completed.

The issue is I would like to make the repairs to the roof and leave the siding as is (using the money for other updates inside the home). The siding is metal and the only damage is dents; otherwise OK. Also, the insurance company figured depreciation into the claim and I can only recover this after the work has been completed (the difference is several thousand dollars). It appears I may be stuck in a situation where I'm going to have to come up with several thousand dollars to have all the repairs made and then hope to recoup it at some point in the future.

I filed the claim to get my roof repaired not have to worry about paying the difference between the insurance claim and the cost of repairs to my (perfectly good but dented) siding.

Having said all that, do I have any rights to fight the mortgage company to make only the "necessary" repairs and receive the rest of the money to use at my discretion? Do I have any option that isn't going to require me to put out money up front?

I appreciate any advice you folks can provide. I've never had to make a claim like this before, and I'm not really sure how to handle this at the moment. Thanks again!What is the name of your state?

 

[moburkes]

No, you have no rights, since its not your house. The money should be used to repair their house, so that, in case you ever default, they aren't stuck making repairs that were already paid out on, but not completed.

 

[alligatorob]

For what it’s worth this happened to me a couple of years ago when we had hurricane damage. I just deposited the checks; the bank took them and asked no questions, even though it was made out to both me and my mortgage company. I did use the money to fix the damage and spent some of my own to make the house more valuable; so if it ever comes up the insurance company should be ok with it. But it’s been two years and I have not heard boo from them.

It would have been very difficult for me to just put the money in escrow and pay it out as the work went along. In 2005 with all of the hurricane damage there was no way to get a licensed contractor in our part of Florida without paying a fortune and having long delays. I got my own permits and did the work myself and hired local labor. To get some of those guys at that point you had to pay cash only, no cash at the end of the day no work the next.

Anyway based on my experience I’d just try depositing the check and see what happens, but it if works be sure and spend the money fixing the damage. Keep good records and good receipts. Good luck.

 

[tammy8]

OP do NOT do what alligator is telling you.

That is FRAUD!

Speak with your mortgage company and find out how they usually handle this.

 

[byrd42]

DON'T DO IT! DO NOT TRY DEPOSITING THE CHECK WITH OUT THE MTG. SIGNING IT.

I deposited my check, which was made out to Mtg. Co and myself and the teller did it, but it was caught later by the bank. Then the check could not be released from the bank and I spent weeks getting the mess straightened out. Had to have the bank cancel out the original deposit, then had to have the Insurance Co. reissue a new check once they recieved the cancelled one from the bank and so on and so on. In the meantime, I had already had contractors working on my house and they wanted their initital 1/3 installment. Well guess what, I didn't have the funds, so had to use my credit card. Luckly, I had enough to cover it.