It is difficult for me to believe that people are unaware of the protection lienholders require from their customers. Did they not read the mortagage contract ? In most cases their policy has a “loss payable clause”, in plain English, that states payment will be made to the Insured and the lienholder. (This only applies to real property, not the Insureds personal property) You would have to be truly ignorant to borrow thousands of dollars and not read the contract or buy a very expensive insurance policy without at least reading
the “declarations” page of the policy to see what you are insuring. Duh !
Couldn’t agree more with Superjuster. There is another side though and it’s the Banks & Mortgage Co., not hiring staff to assist during times of known disasters. Most mortgage people haven’t a clue how to handle and Escrowing these funds for payout as work is satisfactory performed is Sound Financial Business, for all parties. I am sure checks issued are one for building which should be Escrowed, Loss of Use separately and Personal Property a third. This keeps everything and everyone knowing facts. Contractors also know that mortgage/banks are involved 99% of the time and should work with both for smooth results and payment.
Superjuster – Not that I disagree with your comment, but I will bet that 99.9% of the US population that has signed a mortgage document didn’t read it. They push people so fast through real estate closings with the hundreds of documents for signature…….Ideally they would be aware of this, but until a catastrophe like this occurs, noone really has to deal with it, and, mortgage companies are even more on guard right now because of the potential for improper repairs.
I think everyone is missing the point. The mortgage companies don’t seem to want to release ANY funds until the work has been completed and they have inspected the premises. When you have a lot of damage, where is the insured suppose to get the money to do the repairs? Take out a loan? I understand that the mortgage company wants to protect their interest, but come on, if the insured could afford to pay for his losses, why would he have insurance? Not to say all mortgage companies are with-holding all monies, but being in Florida, mine tried to. I had to fight to get it. With contractors at a premium, none would start work without a deposit and when the work is complete, they want payment in full. They don’t want to wait for a mortgage company inspector to come out and inspect their work. If you refuse, guess what, no one will do the work. Not a fun time. There has to be a better way with large losses. Maybe the mortgage company could offer the insured a loan contract for the money until all repairs on done. Come up with ideas, not how dumb the insureds are.
Wells Fargo lied and said they mailed my
insurance check Dec 20th. I never got it.
So then they said they mailed it Dec 29th.
By the time I finally got the money my
modular home builder charged $4,000 more
for the delay. Not to mention I have to
wait another whole month. I ask for the
rest of the money and they said they need
to inspect the house first. My land without
the house is worth more than I owe on my
mortgage. Do I have any rights?
I too received my insurance check in our mortgage company’s name, Greentree and my name. We were told to express mail the check to them so they could dole it out. Our check was for under $10,000. We ran all over town getting estimates to send with the check. We mailed the check on 1-3-05 (greentree said to express mail it, $13.65). Greentree received the check 1-6-05. It then took 7 days for the check to go from the mail room to the claims department (why express mail it) . The claims department received the check 1-13-05. I was then told they would get a check cut 7-10 days from the 13th. Our quotes were not open ended. Our mobile home is leaking.
I just got off the phone with Greentree and they sent us half the money for the wood to do our roof. We have no money left to pay out of our pockets. We have finished all the other repairs with money out of our pocket but they will still not release the money until all repairs are made. Our check was for under $10,000 which we were told 90% of the mortgage companies do not hold check for under $10,000 unless you are behind on your payments. What can I do?
dc
If you deposit in a savings account you are very fortunate to get 2% or 2 dollars on a 100 dollars, consider it the other way around the bank lends at 4% to 23% or more if you consider all types of fees now think how much a mortgage company gets, mortgage companies, are usually banks now or are tied to banks. 50,000 insurance checks at 5,000 each gets you 250,000,000 million at say 5%, in a year that is 12,500,000 million if the mortgage company can hold the money for just three months that is 3,125,000 million with no risk no investment, well apart from the part time service employee that does not know anything, but what he or she is told to say be sent in 5 to 7 days, and you get your check after three months or so, and the banker gets his money, free and clear, and maybe even cause a foreclosure where the banker makes more, and then you get “Bailout” money too. Just think how much money is made off your sorrow. It is really great. Isn’t it.
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It is difficult for me to believe that people are unaware of the protection lienholders require from their customers. Did they not read the mortagage contract ? In most cases their policy has a “loss payable clause”, in plain English, that states payment will be made to the Insured and the lienholder. (This only applies to real property, not the Insureds personal property) You would have to be truly ignorant to borrow thousands of dollars and not read the contract or buy a very expensive insurance policy without at least reading
the “declarations” page of the policy to see what you are insuring. Duh !
Couldn’t agree more with Superjuster. There is another side though and it’s the Banks & Mortgage Co., not hiring staff to assist during times of known disasters. Most mortgage people haven’t a clue how to handle and Escrowing these funds for payout as work is satisfactory performed is Sound Financial Business, for all parties. I am sure checks issued are one for building which should be Escrowed, Loss of Use separately and Personal Property a third. This keeps everything and everyone knowing facts. Contractors also know that mortgage/banks are involved 99% of the time and should work with both for smooth results and payment.
Superjuster – Not that I disagree with your comment, but I will bet that 99.9% of the US population that has signed a mortgage document didn’t read it. They push people so fast through real estate closings with the hundreds of documents for signature…….Ideally they would be aware of this, but until a catastrophe like this occurs, noone really has to deal with it, and, mortgage companies are even more on guard right now because of the potential for improper repairs.
I think everyone is missing the point. The mortgage companies don’t seem to want to release ANY funds until the work has been completed and they have inspected the premises. When you have a lot of damage, where is the insured suppose to get the money to do the repairs? Take out a loan? I understand that the mortgage company wants to protect their interest, but come on, if the insured could afford to pay for his losses, why would he have insurance? Not to say all mortgage companies are with-holding all monies, but being in Florida, mine tried to. I had to fight to get it. With contractors at a premium, none would start work without a deposit and when the work is complete, they want payment in full. They don’t want to wait for a mortgage company inspector to come out and inspect their work. If you refuse, guess what, no one will do the work. Not a fun time. There has to be a better way with large losses. Maybe the mortgage company could offer the insured a loan contract for the money until all repairs on done. Come up with ideas, not how dumb the insureds are.
Wells Fargo lied and said they mailed my
insurance check Dec 20th. I never got it.
So then they said they mailed it Dec 29th.
By the time I finally got the money my
modular home builder charged $4,000 more
for the delay. Not to mention I have to
wait another whole month. I ask for the
rest of the money and they said they need
to inspect the house first. My land without
the house is worth more than I owe on my
mortgage. Do I have any rights?
I too received my insurance check in our mortgage company’s name, Greentree and my name. We were told to express mail the check to them so they could dole it out. Our check was for under $10,000. We ran all over town getting estimates to send with the check. We mailed the check on 1-3-05 (greentree said to express mail it, $13.65). Greentree received the check 1-6-05. It then took 7 days for the check to go from the mail room to the claims department (why express mail it) . The claims department received the check 1-13-05. I was then told they would get a check cut 7-10 days from the 13th. Our quotes were not open ended. Our mobile home is leaking.
I just got off the phone with Greentree and they sent us half the money for the wood to do our roof. We have no money left to pay out of our pockets. We have finished all the other repairs with money out of our pocket but they will still not release the money until all repairs are made. Our check was for under $10,000 which we were told 90% of the mortgage companies do not hold check for under $10,000 unless you are behind on your payments. What can I do?
dc
Dear Superjuster:
You should have such problems, then “duh” we would not have to read your comments.
Thank you.
If you deposit in a savings account you are very fortunate to get 2% or 2 dollars on a 100 dollars, consider it the other way around the bank lends at 4% to 23% or more if you consider all types of fees now think how much a mortgage company gets, mortgage companies, are usually banks now or are tied to banks. 50,000 insurance checks at 5,000 each gets you 250,000,000 million at say 5%, in a year that is 12,500,000 million if the mortgage company can hold the money for just three months that is 3,125,000 million with no risk no investment, well apart from the part time service employee that does not know anything, but what he or she is told to say be sent in 5 to 7 days, and you get your check after three months or so, and the banker gets his money, free and clear, and maybe even cause a foreclosure where the banker makes more, and then you get “Bailout” money too. Just think how much money is made off your sorrow. It is really great. Isn’t it.