In the state of Michigan.
We had a small fire in our home, and are living in temporary housing that the insurance company is paying for. The insurance company issued an RCV check, which has both our names and our mortgage company on it, which is the practice under law as I understand it. We signed the check, sent it to the mortgage company.
The mortgage company delayed for a month in issuing the first draft for our contractor, so no work happened. While speaking on the phone to my mortgage company trying to sort out what the delay is, one of the employees noted that my loan is flagged for sale to another bank. In my reading of the law, the bank is required to notify us 60 days in writing in advance of such a sale, they did not. We pushed the mortgage company to send an inspector and issue the second draw, which is supposed to happen at 50% of the work completed. They issued the second draw, there is only one draw remaining which is supposed to occur at 95% work completed.
My question is, do I have any legal mechanism and standing to force the bank to not transfer my insurance claim? To end the situation by either sending me the remainder of the insurance check, or to keep it and see the claim process through to the end? This transfer of the loan will introduce more delay in the process, keeping my family out of our home even longer, unnecessarily. The way I am looking at it, the insurance claim money is not theirs to transfer, it's mine.
We had a small fire in our home, and are living in temporary housing that the insurance company is paying for. The insurance company issued an RCV check, which has both our names and our mortgage company on it, which is the practice under law as I understand it. We signed the check, sent it to the mortgage company.
The mortgage company delayed for a month in issuing the first draft for our contractor, so no work happened. While speaking on the phone to my mortgage company trying to sort out what the delay is, one of the employees noted that my loan is flagged for sale to another bank. In my reading of the law, the bank is required to notify us 60 days in writing in advance of such a sale, they did not. We pushed the mortgage company to send an inspector and issue the second draw, which is supposed to happen at 50% of the work completed. They issued the second draw, there is only one draw remaining which is supposed to occur at 95% work completed.
My question is, do I have any legal mechanism and standing to force the bank to not transfer my insurance claim? To end the situation by either sending me the remainder of the insurance check, or to keep it and see the claim process through to the end? This transfer of the loan will introduce more delay in the process, keeping my family out of our home even longer, unnecessarily. The way I am looking at it, the insurance claim money is not theirs to transfer, it's mine.
