by avj1999 » Tue Aug 17, 2010 05:10 pm
After a house fire, my mortatgage has been sold but there i sstill $$ left for the remodeling of the house. The mortatgage company is informing me that I will have to inquire with the new company about $$ for remodeling the house.How is this fair? The new company is not the one I filed an insurance claim with. Isn't the old mortatgage company still responsible for the insurance claim on the house--what happens to the unused $$? Does it move to the new mortatage company?
Posted: Tue Aug 17, 2010 06:21 pm Post Subject:
The new company is not the one I filed an insurance claim with. Isn't the old mortatgage company still responsible for the insurance claim on the house
I'm confused as mortgage companies don't pay insurance claims.The insurance company issues the payment with the current mortgage companies name on the check. You then need to see what you need to do in order to get that mortgage company to endorse the check.
Posted: Tue Aug 17, 2010 07:37 pm Post Subject:
When the new mortgage company purchased the note, the insurance money (which was being held) and associated paperwork should have went with it to the new company. The problem that I can see is if they bought a boat load of loans in the process, the funds and paperwork could be lost in a black hole for a while.
You will need to call the new company to find out what you need to do to get the funds.
Posted: Wed Aug 18, 2010 01:18 am Post Subject:
You can also contact your insurance company and try to get their assistance. As Dasfuk has stated, you are likely to find yourself deep in a "black hole" -- just don't give up, and make DAILY calls to everyone on their toll-free phone lines . . . former mortgage servicer, new mortgage servicer, insurance company . . . until your question gets resolved.
If your mortgage is FHA insured, you can try to bring them into the mix, too.
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