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 Posted: Mon Aug 02, 2010 7:39 pm Post subject: Please help! |
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| We recently had our home vandalized and it suffered approximately $5100.00 worth of damage. My mortgage co is 21st mortgage and they told me that I have to endorse the check and send to them. They told me they would also decide if my husband and I were qualified to repair the damages and that we would have to give proof of our qualifications. I told them I would send them the check and they could sign it and send it back to me. The lady on the phone told me that wouldnt work and I told her that I was not going to send the check. She then told me that they would contact the insurance company and get another check re-issued to them. Is this legal? I'm first on this check and the check is only for $4200.00. What can I do about this situation? Thanks for any advice! Heather |
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notahappycamper
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| Posted: Mon Aug 02, 2010 11:35 pm Post subject: |
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Well, yes and no... but mostly, you can't just get a one party check.
Your mortgage company has _every right_ to make sure that _their_ home is repaired and repaired correctly. This is exactly what they are doing.
Question... why not just go along with the game plan? Only thing I can think of is that you are not going to use the money for the repairs... which is why your mortgage company is now going to play hardball.
Your carrier really should not send a replacement check without getting your permission to place a stop payment on the check you have. It was issued in good faith. Your carrier could/might put a stop pay on it and issue the payment directly to your mortgage company but it should still have your name on it. They have as much responsibility to you as to your mortgage company. But really, your carrier issued the payment with the correct names on it and they could (probably should) just wash their hands of the issue between you and your mortgage company. If that check were cashed without the mortgage companies endorsement then I'd start looking for a good defense attorney and another place to live.
The check being $900 short sounds like a deductible was taken as well as depreciation. If you have replacement cost coverage then the depreciation is paid once the repairs are completed. |
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tcope
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| Posted: Tue Aug 03, 2010 12:16 am Post subject: |
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| I have never been late on any of my payments, I have interest in the home too. I have no intentions of using that money on anything other than fixing the house. I'm not into frauding anyone. Nor would I be stupid enough to sign a check that did not just have my name on it. I don't trust the mortgage company but have never given them a reason not to trust me, hence my on time payments each and every month. I don't trust them because between the 3 different people I spoke to, none of them gave me the same story. Yes the deductible was taken out and so was depreciation. Thank you for your response and giving me enough credit to think I would actually do something like that when you don't even know me. Not EVERYONE in this world is a thief, crook, or liar. |
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notahappycamper
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| Posted: Tue Aug 03, 2010 12:36 am Post subject: |
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What you need to realize is that they don't know you from the other hundreds of thousands of people they finance. With that many customers how many times do you think they will be screwed over if they did not make sure the work was done? Just look around at all of the people who default on their loans for the answer.
| Quote: | | Thank you for your response and giving me enough credit to think I would actually do something like that when you don't even know me. |
I never said you were going to do it... but the question is raised, why not simply follow their directions? |
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tcope
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| Posted: Tue Aug 03, 2010 6:23 am Post subject: |
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I'd agree with tcope that the check was issued with good faith. The insurer should also get your consent while placing a stop payment.
| Quote: | | I don't trust them because between the 3 different people I spoke to, none of them gave me the same story. |
Well, I'd be truly interested to know how each of them differed with the others? |
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roddick
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| Posted: Tue Aug 03, 2010 7:05 am Post subject: |
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Like it or no, your only answer is that you are going to have to send them the check. Then start looking for a contractor...cause it sounds like they won't let you repair the house yourself. You could always try someone higher up as far as doing the work yourself.
I also agree that the insurance company should not re-issue the check to the mortgage company even with your name on it. I always stayed out of these matters and told both parties that it was between them.
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Dasfuk
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| Posted: Tue Aug 03, 2010 12:17 pm Post subject: insurance |
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| OP...no one accused you of doing anything. I can't blame the Mortgage Company. They just want to make sure that you use the check what it is intended to be used for..that's all. You ALSO have to realize how many 'stories' that companies WHY the money should be given directly to the homeowner, etc. I'm sure they've heard it all!! |
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sdchargersfan
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| Posted: Wed Aug 04, 2010 7:49 am Post subject: |
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| Quote: | | I don't trust them because between the 3 different people I spoke to, none of them gave me the same story. |
Although your skepticism may be justified by these encounters, your mortgage contract almost certainly includes a provision that requires (1) that the lender be named as an "additional insured" on your fire/property policy, and (2) further that all property damage claim checks be issued in your joint names.
It would not be hard to imagine that three different CSRs gave you three different answers. Most work with a book of answers that they look through in response to a caller's questions. It's anybody's guess as to whether they understand your question or can find the appropriate answer.
That's why, if you choose to call them a fourth time, you should ask to speak to the highest level of supervisor you can talk to live at the moment.
The lender gave you the money to buy your home with "utmost good faith" that you would make all of the planned payments on time. You should extend the same "utmost good faith" to them to receive the check, endorse it, and return it to you to use for the repairs or to keep it and send a contractor to perform the required work for the stated amount of money.
If they received the money, and kept it for themselves, it would certainly be a "breach of contract" that would entitle you to civil relief.
You need to read your mortgage documents for the details of how insured casualty losses are supposed to be handled.
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MaxHerr
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| Posted: Wed Aug 04, 2010 11:06 am Post subject: insurance |
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| Comment: OP.... I don't think it really matters WHO you talked to. Your information is on their computer system and all 3 people, you have spoken to have the same info in front of them. |
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sdchargersfan
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| Posted: Wed Aug 04, 2010 12:06 pm Post subject: |
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| Quote: | | I always stayed out of these matters and told both parties that it was between them. |
Did that actually make things easier for you? Didn't it complicate things between all parties? |
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roddick
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| Posted: Wed Aug 04, 2010 5:00 pm Post subject: |
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I'm going to support Dasfuk's position on this point. Once the check has been cut, the matter is out of the adjuster's hands. If there is some sort of beef between other parties, of what concern is it the adjuster's or the insurer's? Both have acted according to the language of the contract, and the issued check ends their responsibility (unless the check was written for an incorrect amount, in which case it will be replaced).
As an agent, I might try to assist my client obtain some resolution, but an adjuster is the insurance company's person with limited authority. That authority ends once the claim has been settled. Insurers do not go out of their way to name payees without justification. If there is an additional insured, that person's name will probably be on the check.
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MaxHerr
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| Posted: Thu Aug 05, 2010 6:05 am Post subject: |
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| Quote: | | Did that actually make things easier for you? Didn't it complicate things between all parties? |
I normally worked for the same carriers, so at the beginning of a claim once I confirmed that it was a covered loss I would inform the insured that they should contact their mortgage company to see what steps they needed to take to have the claim check signed and the money released. I figured even on the best claim that it would take a few days to work up the estimate and get an agreed price and then a few more for the insured to get a check. No matter the time frame, if the isured followed my advice they would know the process that they had to take with their morgage company.
I stayed out of most disputes between the insured and mortgage companies and the insured and their contractor. The insured's contract with those parties was between them. There were a few times that I would try and help certain insured's....usually elderly people or people that I could tell were being taken.
And as an independent, my file was usually closed once payment was made. I would not be able to bill for all of the additional calls to deal with every dispute.
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Dasfuk
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| Posted: Thu Aug 05, 2010 11:46 am Post subject: insurance |
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| Quote: | | The insured's contract with those parties was between them |
I'd imagine that would be easier because you're 'cutting out the middleman' and you don't have alot of confusion. (Hope this makes sense). |
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sdchargersfan
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| Posted: Thu Aug 05, 2010 1:33 pm Post subject: |
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| Quote: | | 'cutting out the middleman' |
The adjuster is not a middleman in the contract between a lender and a borrower or a property owner and a building contractor. They are the representative of either the insurer or the insured in a contract of insurance when a claim arises.
Trying to put the adjuster into any other situation/position is a discussion of apples and oranges.
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MaxHerr
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| Posted: Fri Aug 06, 2010 5:28 am Post subject: |
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| Quote: | | I'd imagine that would be easier because you're 'cutting out the middleman' and you don't have alot of confusion. |
Max, you have to see where SD is coming from. Anytime I got involved in a dispute between an insured and their contractor/mortgage company, i did become the middleman or at least in the insured's eyes. I was the one there holding their hand for the entire claim and now they have another problem and are looking for me to fix it. It did cause confusion and is one the reasons that I tried to stay out of it.
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Dasfuk
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