by eventsbye » Wed Sep 24, 2008 07:57 pm
I had a fire last year, I currently have two mortgages on the property and I need The first issued a draw on the check payable to me, my builder and the second mortgage. Well the second mortgage says that they will not issue the check because I am late on payments. So the reason I am late is because I am over 12 months on living expenses and now I have to pay rent till my house is done. Can they hold a check that is deemed for rebuilding
Posted: Wed Sep 24, 2008 08:49 pm Post Subject:
Yes they can, BUT I think they can only hold the amount you are behind.
Posted: Wed Sep 24, 2008 09:23 pm Post Subject:
[this went from the auto forum to the health forum?]
Personally, I'd speak to the mortgage company and let them know you are perfectly happy to pay them the amount you owe but that their money is within that check. I'd think they would work with you on this.
If not, I'd call the insurance company and ask them if they can place a stop payment on that check and reissued two checks... one for just the ALEs made payable just to you and another for everything else with the mortgage company on it. After all, your mortgage company really has no interest in your claim for ALE.
Posted: Thu Sep 25, 2008 01:41 am Post Subject:
This mortgage company only has to ensorde the check and the whole thing goes to the builder for rebuilding the house
Posted: Thu Sep 25, 2008 03:15 am Post Subject:
This mortgage company only has to ensorde the check and the whole thing goes to the builder for rebuilding the house
The check is made payable to the mortgage company and the insured. If the mortgage company signs the check, the insured could simply skip town with all of the money, owing back payments on the home and leaving the mortgage company with damaged assets.Plus, the check also includes the insureds Additional Living Expense payments. This has nothing to do with the repairs to the home.
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