Mortgage Co made check out to contractor against my instruction!!

[tamkle26]

Mortgage lender made insurance check payable to contractor

I live in Los Angeles, Ca. I filed a water damage claim in Feb 2005. My mortgage lender held back the final check until the repairs were completed. Meanwhile, my mortgage lender sold my home at public auction do to foreclosure. The auction produced excess funds and my loan was paid in full.
During this time the repairs were completed and my insurance company did the final inspection. Finally, I requested that my mortgage lender release the last insurance check to me, which they reluctantly agreed to, but said they were going to make the check payable to the contractor. I told them not to change the payee name on the check and reminded them my loan is paid in full, the work has been completed and inspected and that I am the insured.
They went ahead and put pay to the order of the contractors name any way and are refusing to cooperate. Doe's any one know what my right's are here? and.....What right do they have to do this? After all, they no longer have an interest in the property. Thanks for taking the time to read my post.

 

[acmb05]

No, but when you filed the claim they did.

I am curious why you wanted the check sent to you. Did you plan on stiffing the contractor for the final payment in hopes that you could then say well I didnt own the home it was in foreclosure go after them for your money.

Btw if the house was sold at auction you did not have a stake in it anymore either. Were you in default when you filed the claim? If you were thats probably why they did it that way.

 

[tamkle26]

To acmb05........you're a jerk

Reading your "other" posts confirms my opinion of you! ZERO social skills!
How dare you accuse me of attempting to ripp someone off!! and you never even attempted to answer my "legal" question.....why don't you get a real job and stop insulting peoples intellegence.

 

[acmb05]

and you still

did not answer the question. Why do you think they should give you the check instead of the contractor? You dont own the house anymore and you did not do the work so why should you be entitled to the check.

Also I did not accuse you of anything I only asked a question.

Zero social skills please, Obviously you dont read a lot of the posts here. I am a lot nicer than some of the Lawyers on here.

I could have just called you a crook for filing a claim on a home that was in foreclosure and then trying to take the money and run.

 

[mlk1978]

Unless you paid for the work done by the contractor, there is no reason that the insurance company would make the check payable to you. If you did pay for the work or a portion of it, submit the reciept to the insurance company and they will reimburse you. Otherwise, there isn't anything that you can do. As long as the bank had not taken the house at the time you filed the claim and/or the date of loss was when it was still in your possession, then you did have insurable interest. I hope that helped! Good luck!