Mortgate Co. trying to take Claim check

[kikiwoman]

What is the name of your state? New York

My swimming pool collapsed..I filed a homeowners claim and now my mortgage company who I did not choose, my mortgage was sold to them is trying to take my claim check and force me to put in a new pool. They say they have a vested interest in my swimming pool. Unfortunately the hole in the ground use to be a 16 by 32 foot inground pool. But the insurance check is for about half of the amount to replace the pool. I will not give them the check, and take out a $10,000 loan to pay for the cost of replacing the pool that the insurance didn't cover. Is there anything I can do, or how much trouble can I get into for shredding the check and sending it back to the insurance company? Which I am contemplating doing.

 

[Grandma's house]

I have your answer...only hope it will work.

That is a very difficult one. If it was for something necessary such as a roof that got toppled by a tree, or a storm damaged roof I'm certain you wouldn't mind and SEE this lenders view of course. Swimming pools and boats have two things in common.
There are 2 good days. The day you get them and the day you get rid of them.


YOUR ANSWER...The mortgage/lender regardless of the loan being sold...they MOST CERTAINLY DO have an interest in that pool. Go to the appraisal USED TO GET THAT MORTGAGE. Get the grid for the value from the appraiser in which the lender loaned on based on this portion/adjustment for the pool. The amount IS anywhere from 5-15k.
Write a letter that you just do not want the pool...ask if the claim check can be used to pay down the principal balance of the mortgage THUS a win win situation. This way their L.T.V. (loan to value) WILL be reduced as well, less the appraisers adjustment value for the pool and SHOW them this. You are essentially taking value from the home they loaned on....so REDUCE the risk to the lender and pay down their L.T.V. issue.

 

[Grandma's house]

also...make SURE it's o.k. with the insurance co. as well. This portion I am not familiar with. The insurance co. will want the pool replaced? After all...they did insure IT and give monies for IT.

 

[kikiwoman]

Mortgage Company taking check

There was no appraisal done one the house or pool. The previous owner died and the estate wanted to dump the house. We offered them a price and they said ok. The only thing that was done was an okie doke done by the mortgage broker. Making sure we weren't offering to much. Apparently we got the better end of the deal. The pool in question was 40 years old. And the insurance company doesn't care if a pool is in there or not. They already told me that, the claims adjuster said he would just fill it in and take a vacation. As I said before the mortgage company didn't even know a pool was on the premesis. They bought the mortgage, no pictures where ever taken by the mortgage broker when they did all the paperwork, and got us the original mortgage on the house. If the pool hadn't collapsed, I could of just filled it in when I wanted to and they would of never known. They are just being special. I will not give them that check, I will not take a loan out for $10,000 just so they can have a vested interest in a pool they knew nothing about until it collapsed. I just want to know what kind of law I am breaking for refusing to endorse a check and sending it to them.

 

[Grandma's house]

SORRY FOR CAPS...BUT I STILL DON'T KNOW HOW TO DO THE QUOTE THINGY CORRECTLY ...LOL

There was no appraisal done one the house or pool. (BULL) The previous owner died and the estate wanted to dump the house. (O.K.) We offered them a price and they said ok. (YOU SAID THIS SO WHO CARES) The only thing that was done was an okie doke done by the mortgage broker. (YOU MAY HAVE HAD AN OKIE DOKE "BROKER" BUT YOU HAVE A REAL LENDER) Making sure we weren't offering to much. Apparently we got the better end of the deal. The pool in question was 40 years old. (AND WAS THERE WHEN THE LENDER GAVE YOU A "REAL" MORTGAGE) And the insurance company doesn't care if a pool is in there or not. (NOW WE KNOW THEIR ANSWER) They already told me that,(O.K) the claims adjuster said he would just fill it in and take a vacation. (WHAT DOES HE KNOW ANYWAY?) As I said before the mortgage company didn't even know a pool was on the premesis. (THEY DO NOW AND YOU ARE DEPLETING THE VALUE) They bought the mortgage, no pictures where ever taken by the mortgage broker (MORTGAGE BROKERS DONT TAKE PICS. APPRAISERS DO) when they did all the paperwork,*(FOR THAT REAL MORTGAGE THAT "OWNS" YOUR HOUSE AND WILL TAKE IT FROM YOU IF YOU P** THEM OFF) and got us the original mortgage on the house. (YOU DID NOT GET A MORTGAGE WITHOUT SOME SORT OF AN APPRAISAL) If the pool hadn't collapsed, I could of just filled it in when I wanted to and they would of never known. (TRUE BUT THEY DO NOW) They are just being special. (THEY ARE SPECIAL...WHO IS THIS LENDER? GOD BLESS THEM) I will not give them that check, I will not take a loan out for $10,000 just so they can have a vested interest in a pool they knew nothing about until it collapsed. THEY KNEW ABOUT IT I PROMISE YOU THEY DID) I just want to know what kind of law I am breaking for refusing to endorse a check and sending it to them.

NONE...UNTIL YOU CASH IT AND USE IT AND COMMIT THEFT OF THEIR INTEREST IN "THEIR" HOME. THEY OUGHT TO FORECLOSE.

If I seem upset..It's because I am. You are just dying to spend that 10k that should only be used for either the pool or reduce the principle balance. PERIOD.

 

[kikiwoman]

You are calling me a liar and that I am not. What happened is exactly what happened with the circumstances surrounding my house. DON'T YOU EVEN PRESUME TO KNOW THE CIRCUMSTANCES OF THE BUYING OF THE HOUSE. I am not sorry for the caps. I cannot cash the check without their endorsement IF YOU KNEW ANYTHING YOU WOULD KNOW THAT. But on the other hand they cannot cash it either. I will send it back to the insurance company voided. I don't care about it. I don't want a pool, my husband wanted it. I don't care about the money, the insurance company can keep it as far as I'm concerned. Yes, it would of been nice, but oh well such is life. Guess I'm sending it back.

 

[Happy Trails]

You are calling me a liar and that I am not. What happened is exactly what happened with the circumstances surrounding my house. DON'T YOU EVEN PRESUME TO KNOW THE CIRCUMSTANCES OF THE BUYING OF THE HOUSE. I am not sorry for the caps. I cannot cash the check without their endorsement IF YOU KNEW ANYTHING YOU WOULD KNOW THAT. But on the other hand they cannot cash it either. I will send it back to the insurance company voided. I don't care about it. I don't want a pool, my husband wanted it. I don't care about the money, the insurance company can keep it as far as I'm concerned. Yes, it would of been nice, but oh well such is life. Guess I'm sending it back.

Of course their name is also on the check.

....and the point of sending it back would be what? That nobody gets it? Sweet!

 

[las365]

If it is typical, your mortgage contract governs the right to control of insurance proceeds paid for the repair of the property. If the insurance didn't pay enough to repair/replace the pool, your primary beef is probably with it.

I am guessing that there is some miscommunication between you and your mortgage company. You don't have to rebuild the pool, but I'd bet that you do have a legal obligation to use the insrance funds to repair the damage in some fashion. Get an estimate for removal of the pool debris and refilling the hole. That amount should be less than rebuilding the pool.

Refusing the insurance proceeds and leaving the collapsed pool as it is makes no sense. The pool at this point probably creates a hazardous condition and definitely devalues your property.

You are angry, I get that. You would probably benefit from a consultation with an attorney to review the mortgage contract, your insurance policy, and get some advice regarding your rights and obligations.

 

[Grandma's house]

That would be PERFECT that she void it and send it back. The insurance co. would then re-write it ONLY to the lender since she is actually saying she doesn't want it. Nor will fix the pool. They will POSS. do right and place it onto the prin. bal. owed TO THEM.

Look...I get that you don't want that darn pool that is horrible to upkeep...I know this believe me I do.

You have to see the logic though. That mtg. was based on the home and all iof t's value...and for some reason a POOL adds value. Why do you think us lenders will not do mobile homes anymore even though F.H.A. says we can? They take them off the property. Same thing in disposing of this asset.

I am trying to keep you out of trouble here. You asked: what kind of legal trouble you could get into...thus I thought the check was mistakenly made payable to only you. o.k.

 

[Grandma's house]

Try this...Endorse the check with this verbiage written on the back THEN your signature UNDER this. "To be placed onto the principle balance acct. #123456 and forward it to the lender with your next mos. statement with your payment. It will go to payment processing and likely be placed on your principle balance. They won't know what else for.

What are THEY going to do with it? They certainly aren't going to repair it either.

 

[nextwife]

Simple:

If you do not wish to be governed by the agreement already in place when you took over the home, (which was already on the title to that real estate), pay off the lender and then proceed to do as you wish. No doubt you could have the insurance check reissued to you alone, if the lender did not have a prior interest per the existing mortgage.

 

[Grandma's house]

halelujah...short and to the point. However no lender is going to loan with a huge hole in the back yard with a pool that does not work. An appraiser would have to note that it needs repair and note this and give value "subject to" (how bad does this pool look anyway O.P.??)

Not F.H.A. surely but poss. a sub-prime lender...

Oh yeah...they are all gone now THOSE DARN SUB-PRIME LENDERS. Now 1/2 the nation can't get re-financing and their rate are sky rocketing on their a.r.m.s.

 

[lwpat]

Have you looked into refinancing? Depending on your interest rate, this may be an option.

 

[kikiwoman]

You don't have to rebuild the pool, but I'd bet that you do have a legal obligation to use the insrance funds to repair the damage in some fashion. Get an estimate for removal of the pool debris and refilling the hole. That amount should be less than rebuilding the pool.


I absolutely want to keep that area safe. It is surrounded by a fence with locks on the gates. I've always had locks on the gates to the pool. From the day I bought the house. I also plan on filling it in. Kind of hard to get someone to remove debris, dump dirt and level it out though when it's 5 below zero outside most of the time. Can't do nothing on that till the weather breaks.

 

[nextwife]

halelujah...short and to the point. However no lender is going to loan with a huge hole in the back yard with a pool that does not work. An appraiser would have to note that it needs repair and note this and give value "subject to" (how bad does this pool look anyway O.P.??)

Not F.H.A. surely but poss. a sub-prime lender...

Oh yeah...they are all gone now THOSE DARN SUB-PRIME LENDERS. Now 1/2 the nation can't get re-financing and their rate are sky rocketing on their a.r.m.s.

Who said anything about a LOAN? Pay them off some other way.

OR fill the hole and landscape FOR THE NEW LENDER. A pool is NOT a plus to us northern buyers, and MOST homes do NOT have pools. Most buyers do not WANT the expense to maintain a pool that the can only use two or three months an year.