Insurance Company and Mortgage Company withholding funds

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Latest post 07-05-2012 10:00 PM by abila2770. 17 replies.
  • 05-21-2011 6:00 PM

    Insurance Company and Mortgage Company withholding funds

    I am in desperate need of advice.  I did everything I could think of to move this claim quickly and to be proactive and stay informed, and yet everywhere I turn I'm getting rebuffed.  I'm sorry this will be long, but I have worked my tail off on this, so there is a lot of detail.

    We had a tree fall on our house on April 19 of this year during a storm with straight-line winds that clocked over 80 mph.  The tree fell on our mother-in-law suite and sent a shock-wave through the whole roof of the suite, breaking loose all the trusses and rafters and sinking the ceilng in the living room/kitchen area.  The suite is not safe to stay in, but thankfully the main part of the house is.

    We called our insurance agent that night, called the company the next morning.  This was on Tuesday night/Wednesday morning.  The insurance company said they would have the adjuster call us to arrange a time to evaluate our damage, and assured us that this appointment would be around Monday/Tuesday of the next week.  We were given the go-ahead to remove the tree from the house to avoid further damage.  My sister, who missed being hit by literally seconds, ended up having to see a doctor for PTSD, and all of us are feeling very traumatized and unsafe.

    The adjuster called us on Monday, April 25th at 5 p.m. to tell us that it would be ANOTHER week at least before he would get to us even though he would be in our area the next day.  When we protested, he said there had been a lot of damage in our area (we knew this because there had been storms back to back, but our house took the most damage in our town).  We asked to be prioritized because of the major damage our house took.  He got short with my husband, so I called him back, explained that we did not feel safe in the house, that the roof is being held on by the grace of God and gravity and more storms were on the way, we are all suffering from anxiety attacks, and would he at least approve us moving into a hotel so we could feel safe?  Suddenly he got more cooperative:  he said while he hiimself could not approve of a hotel (as he is an independent adjuster and it would come out of his pocket) he could have the company staff adjuster call us the next morning.  We did get the call and they approved us going to a hotel as long as we paid up from and they would reimburse us.  We finally made the decision not to do that (thank goodness, as we would now have been in the hotel for over a month!), but we did emphasize how bad our damage was and she agreed that the adjuster would be able to see us sooner (even though we were told this was flat-out impossible before).

    The adjuster came out on April 28th and did a thorough inspection.  We had our contractors out there with him with the exception of the electrician and the adjuster agreed with everything we claimed and even pointed out a couple of things.  He said he would have the claim filed with the company the next morning and we could expect our claim to be resolved and have a check within 7-10 days.  We asked specifically if he meant 7-10 BUSINESS days and he said no, 7-10 days, which would have been May 9th at the latest.

    The staff adjuster questioned one item on the claim - they said they needed an itemized bill from the contractor who removed the tree from the house showing how much was for tree removal and how much was for yard clean-up.  We call the contractor and within an hour he had re-written the itemized bill and we had emailed it and received receipt of the email from the insurance company.

    May 9th came and went and no check, no phone call, no email, no contact.  We tried repeatedly to reach our staff adjuster and finally were able to talk to her on May 12th.  She said the check had been mailed at the beginning of the week.  We asked the total amount and she said while the claim had been approved for the entire $28,000 (miinus $1000 deductible), the check was only for $15,500.  They insurance company plans to hold the other $11,500 until it receives ALL of our receipts for work and replacement of personal items.  Now, I understand there are people out there who pocket their check and don't fix their house, but the things they are withholding are beyond my belief:  my sister's personal property that we considered totally lost and beyond repair was some $1650.  Out of the $15,500, the insurance company put $825 at her disposal, saying they will release the other $825 when she presents receipts for $1650 - how in the blue blazes is she going to replace $1650 worth of property with $825 and then present receipts for $1650??  She makes minimum wage and lives with us to make ends meet!  Same thing with the carpet - they approved our contractor estimate of $1404, but only include $702 in their check - they will send the other $702 when we present a receipt for $1404 - do they really think the carpet company is going to install $1404 worth of carpet and take $702 for it and agree to wait for the rest?  This is a poor community and no business here can afford to do that.

    But this aside, the insurance company tells us that because this partial check is for more than $10,000, it must be made out to my husband, me, and to the lien holder of our mortgage, who must endorse it before we can deposit it.  Again, from their point of view, I can sort of understand it, but in the real world, how exactly is that supposed to work??  They say we can take it to the nearest branch of our mortgage holder, which to our knowledge is over 200 miles away, and get them to endorse it.  So me, being a stickler for detail and making sure things are done right the first time, asks if they have the mortgage holder listed as [the bank] (since we have already had to correct this insurance company on this - twice).  No, they have a company that does not even exist.  When we bought this house 2 1/2 years ago, it was through [a company].  In the 6 weeks between closing and our 1st payment, the mortgage had been given over to [one company], then to [a bank] against our wishes and without any permission or even notice.  As I said, we had informed the insurance company of this change TWICE already, yet the check that is "in the mail" is made out to a company that has never held the mortgage and does not even exist.  And the adjuster is surprised that I am upset by this.  First she offers us no solution, though how we are expected to get a company that does not exist to endorse a check on a house where [the bank] is the lien holder is beyond me.  We finally get her to agree to stop-pay that check and issue a new one, which she says she will overnight to us (only after we emphasize that the damage is getting worse every day from the weight of the roof, which is sitting improperly on the house now).  She also tells us we can go ahead with temporary repairs!  With what?  We already owe almost $4000 for the immediate repairs that had to be done, such as removing the tree.

    Since the adjuster had told us we had to have [the bank] endorse the check, I (being proactive and wanting this accomplished asap when the check gets here) call [the bank] and explain the situation, asking what procedure I need to follow to expedite this.  The rep tells me that [the bank] can give us a commit code over the phone and gives me a number to the Property Claims Department, telling me that once I have the check in hand to call this department and they will be able to endorse it over the phone so I can deposit the check.  Then I call my credit union to find out how to keep them from holding this check for up to 10 business days.  They tell me that as soon as I have [the bank]'s endorsement to bring the check to a local branch and show a supervisor, who can approve it.  Only problem is that the nearest branch is in another state - when we moved, we kept our account with [a company] because we liked them and we had a great reputation with them, so we use a "sister" credit union to do our banking.  In that case, [the company] tells us that once we have [the bank]'s endorsement commit code, to call a [company] supervisor and alert them to accept a fax of the front and back of the check, then gave me the fax number.  The supervisor will confirm the endorsement and fax the confirmation back to me, which I would then take to my sister credit union and deposit the check, which would not be held.  See, I'm being as proactive as possible here.

    So we wait, no check comes in the mail overnight.  The check wrongly made out to [a company] arrives - this check that the adjuster says was mailed on May 9th, but which is dated May 11th and is post-marked May 12th - but no other check.  We call and call and finally get the adjuster again on May 19th.  She says again the check will be overnighted, but offers no reason why it was not overnighted after we talked to her on May 12th.

    We received the corrected check on May 20th - a handwritten check, but at least it has the right names on it.  I nearly fainted from relief - at last we can get started after a month of tension, and it's only been a month because I have pushed and pushed to get things done asap.  So we call the Property Claims Department at [the bank].  Now we are informed that we SHOULD have called them in the first place and opened a claim on this damage.  I tell them I called the main customer service number, the name of who I talked to, and that I had asked exactly how to go about this, and what I was told.  No matter.  Now [the bank] wants US to endorse the check and mail it to THEM (am I right in thinking this gives them the power to cash the check?).  After THEY confirm everything that has happened over the past month, they will deposit the check to our account (we have no account with [the bank], just the mortgage), oh, okay, then they will rewrite us a check, this time from [the bank], so we can deposit it with our credit union.  This will take 7-10 business days after they receive our endorsed check and then we will receive their check for  - get this - $10,000 of the $15,500!  This is because they want proof that the repairs have begun before THEY release the other $5,500.  We tell them that we cannot START the repairs until at least the $15,500 is released and that the insurance company is already holding another $11,500 for the same reason.  They don't care.  We talked to a supervisor, who got very impatient with our "lack of cooperation".  We again told her what their CSR had told us a week ago and she says they have call centers all over and she has no idea how to tell what rep we talked to.  I gave her the name of the rep and the date of the call.  She says there is no record on our account that we called.  I told her I have phone record that proves otherwise.  She says she will mail us the guidelines that she must by law follow, which we should have requested in the first place, even though we had no idea they existed and we did request information on how to handle this a week ago with the rep that apparently doesn't exist.  But, she says, in the meantime we should just trust her and endorse the check and send it to [the bank].  I asked her how I could trust she was telling the truth when the previous person I contacted did not.  She said, "Ma'am, I have no reason to lie to you."  I asked her what reason her CSR would have to lie to me.

    But the upshot is that we are now asked to endorse the check and send it to TX, where it will take us 7-10 business days after it's received to get part of it back.  No ifs, and, or butts.  She gave us her full name and her extension and said we could call her back immediately to verify this.  We did so, repeatedly, and got tossed around their voice automated system for over TWENTY minutes until we finally got someone to give us her email address.  When she got the email, she called us back.  Now all the sudden, those guidelines that were set in stone and law have changed.  Now we can send the endorsed check with a letter showing why we need over the $10,000 to get started - we still wouldn't get the whole $15,500, but we would get over the $10,000 - and we need to include a statement from the main contractor of how much money he MUST have to begin work.

    I am scared to death to do this - after having been lied to, misinformed, delayed, and given the silent treatment by both the insurance company and the mortgage holder for over a month, I am terrified to endorse this $15,500 check and send it out into the ether, having no guarantee but their word of when it will return or how much it will be or if it will be enough to start work.  And I have no idea what my options are otherwise.

    We did call the Property and Claims Department back and talk to a different representative, who offered to fax us the guidelines instead of making us wait extra time for them in the mail.  She at least understood our concern about sending out an endorsed check before we saw the "guidelines".  She was also the first person in all of this who asked if any of us had been hurt and expressed sympathy for our plight.  I have heard numerous complaints about [the bank] over the years and dreaded dealing with them when our mortgage was unceremoniously handed to them without a by-your-leave.  But I have not had much problem with them until now.  We pay ahead of schedule, we pay extra principle, and they even offered to lower our interest rate, although they could not lower it to a point that made the closing costs worthwhile.  But as soon as this nightmare is over, we will transfer the mortgage from [the bank], no matter the costs involved.

    I have always been one to confirm and document everything I can.  I have taught my children, "If you can't prove it, it didn't happen," and they have already learned in their late teens and early 20s just that.  I have always been one to be as prepared as possible, especially in money and legal dealings.  But I did all that, and it has gotten me nowhere.  The insurance company has agreed that there will be a supplemental claim for damage we can't possibly see until the roof is taken off.  But part of that claim is going to be a psychiatrist's bill because I am literally at the end of my rope.  Well, that's if I can afford to pay the psychiatrist up front....

    Any advice at all would be helpful.  We have had a $28,000 claim reduced to $10,000 cash and are expected to pay out the other $18,000 ourselves on the front end with the flimsy promise of reimbursement in the sweet-bye-and-bye.  How is this supposed to work in the REAL world??

  • 05-21-2011 6:11 PM In reply to

    Re: Insurance Company and Mortgage Company withholding funds

    I'm sorry. I'm the go-to guy for insurance claim questions but I can't read all that.

    Suppose you just explain (in a couple of short paragraphs) why the funds are being held up.

    Meantime I can make a couple of comments based on your last two paragraphs.

    NoNameAvailable:
    But part of that claim is going to be a psychiatrist's bill because I am literally at the end of my rope.  Well, that's if I can afford to pay the psychiatrist up front....

    No.

    Part of your claim is not going to be the psychiatrist's bill so get off that kick.

    NoNameAvailable:
    We have had a $28,000 claim reduced to $10,000 cash and are expected to pay out the other $18,000 ourselves on the front end with the flimsy promise of reimbursement in the sweet-bye-and-bye.  How is this supposed to work in the REAL world??

    Two things.

    1 - If you were paid the actual cash value of your claim (after depreciation was applied) then you have to complete the repairs, pay for them, and submit a paid invoice to the insurance company to be paid the holdback. There is nothing flimsy about that promise. It's written into your policy.

    2 - If there is damage that cannot be seen until the roof comes off then you will not get paid for that damage until the roof comes off and that damage can be discovered, inspected and evaluated. Period.

    That's how it works in the real world.

    And if the title of your post means that the mortgage company is holding the funds until the repairs are completed and it can verify the repairs before releasing the money, that's whats written in your mortgage loan contract.

    Exactly what happened to me a while back when I had a big claim and the mortgage company held on to the money. I had to front it and then get the money back.

    There is nothing easy about big property damage claims.

    See if your mortage company will release funds in phases as the work is being done.

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 05-21-2011 6:27 PM In reply to

    • DPH
      Consumer
    • Top 10 Contributor
    • Joined on 10-08-2001
    • TX
    • Posts 7,429

    Re: Insurance Company and Mortgage Company withholding funds

    NoNameAvailable:
    How is this supposed to work in the REAL world??

    That is the real world.  Been there and bought the T-shirt.  Save your receipts and get your mortgage company to agree to inspect at regular milestone intervals and release funds accordingly.  You also need to try and work a deal with your contractor to work with you on payment.  You also need to holdback payment until all work has been completed 100% before they get paid. 

     

    "Never argue with stupid people, they will drag you down to their level and then beat you with experience."  -  Mark Twain

     

  • 05-23-2011 1:11 PM In reply to

    Re: Insurance Company and Mortgage Company withholding funds

    Adjuster Jack, I appreciate you trying to answer my questions.  I know the post was long, but I'd rather put too much information than too little.  The line about the psychiatrist was sarcasm, but I appreciate the answer all the same.

    I understand that there are people out there who put in a claim, then pocket the money and don't make the repairs.  I understand that such action devalues the property and this concerns both the insurance company and the mortgage company.  I understand that some of the money is being held by the insurance company until they see actual receipts for work completed - they have approved the claim based on estimates - and the main contractor does not expect to get all of his money until the repairs are completed.

    What I do not understand is that both the insurance and the mortgage company have decided how much EACH of them can hold back and wait for receipts.  If the insurance approved the claim for $28,000 and says that we should be able to pay everything we need to pay up front for $15,500, then how does the mortgage company expect we should only need $10,000?  Once I understand, but the mortgage company is acting like our whole claim was approved for $15,500 and we should be able to pay all up front costs for $10,000, which we cannot.  Temporary repairs alone have cost nearly $4,000.

    -- "And if the title of your post means that the mortgage company is holding the funds until the repairs are completed and it can verify the repairs before releasing the money, that's whats written in your mortgage loan contract." --

    Actually, this was NOT written into our original mortgage contract.  Hence our extreme confusion.  We were originally contracted with [a company] and both we and our lawyer read every single piece of paperwork before we signed on the dotted line; however, between our closing date and the date of our first house payment (6 weeks' time), [the company] rolled us over to [another], who rolled us over to [a bank].  During this time, we were not sent any notice of any changes other than a single sheet of paper each time telling us who we had been turned over to, and that essentially nothing was changed other than the name of our mortage company.  We were not notified beforehand, nor were we given any part in this process, despite our original paperwork guaranteeing this would NOT happen - something the VA is still highly upset about since we proved that we did not have any part in these changes.  Nor did our house insurance have any dealings with [the bank] or set up new rules before this happened because our insurance company failed to change the name of our mortgage company to [the bank] even those we informed them of the change 3 times.  If the [bank] contract says something different from our original contract, then this was changed without our knowledge or consent.

    We are now in the middle of getting a lot of guff from [the bank].  We have talked with 6 different people, 5 of them since Friday, and we have been given 6 different procedures they want us to follow.  Each time we tell them we were told otherwise by one of their representatives and give that represetative's name, we have been called liars.  Then we are given a new set of instructions.  We are not just hearing them wrong or misunderstanding their instructions because each time we have written them down and re-read them to the representative.  What do you do with a mortgage company that cannot even keep their own story straight?

    [The bank] has said that they will release funds in phases as work is being done.  But this is a HUGE waste of everyone's time.  The actual work time is expected to take less than 2 weeks.  But with all the money being held and the fact that we are now expected to call each time someone nails to things together, wait 2-3 business days for someone to call back and schedule an inspection, wait for the inspection, wait for the inspection report, wait for the release of more money, then get back to work, this job that could have already been finished will most likely be finished before summer is over - and that is not sarcasm, that is the word straight from [the bank].

  • 05-23-2011 2:32 PM In reply to

    Re: Insurance Company and Mortgage Company withholding funds

    NoNameAvailable:
    The line about the psychiatrist was sarcasm, but I appreciate the answer all the same.

    If your comment about the psychiatrist bill was made facetiously, then my response was facetious.

    But if you actually believed that you could win the psychiatrist's bill in a lawsuit over this, then my comment was not sarcastic, it was just plain fact that it'll never happen.

    NoNameAvailable:

    What I do not understand is that both the insurance and the mortgage company have decided how much EACH of them can hold back and wait for receipts.  If the insurance approved the claim for $28,000 and says that we should be able to pay everything we need to pay up front for $15,500, then how does the mortgage company expect we should only need $10,000?  Once I understand, but the mortgage company is acting like our whole claim was approved for $15,500 and we should be able to pay all up front costs for $10,000, which we cannot.  Temporary repairs alone have cost nearly $4,000.

     

    That's because you have two different contracts that are mutually exclusive, other than the insurance policy "loss payable" clause requires the insurance company to name the mortgage company on the check.

    With regard to the insurance policy, your Replacement Cost coverage does allow for the depreciation holdback. That should be easy to find in your policy.

    However, if you believe that the insurance company applied too much depreciation to the initial settlement, you can invoke the Appraisal clause of the policy. Looks something like this:

    • Appraisal
    • If you and we fail to agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will choose a competent and impartial appraiser within 20 days after receiving a written request from the other. The two appraisers will choose an umpire. If they cannot agree upon an umpire within 15 days, you or we may request that the choice be made by a judge of a court of record in the state where the "residence premises" is located. The appraisers will separately set the amount of loss. If the appraisers submit a written report of an agreement to us, the amount agreed upon will be the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will set the amount of loss.
    • Each party will:
    •      1.  Pay its own appraiser; and
    •      2.  Bear the other expenses of the appraisal and umpire equally.

    The obvious disadvantage to that is that it could take months and cost you some money.

    NoNameAvailable:

    -- "And if the title of your post means that the mortgage company is holding the funds until the repairs are completed and it can verify the repairs before releasing the money, that's whats written in your mortgage loan contract." --

    Actually, this was NOT written into our original mortgage contract.

     

    Well, without actually reading your mortgage contract, I can only tell you that you might be making a common error in thinking that it's not in there.

    Please quote that portion of your mortgage loan contract that addresses insurance claims or casualty losses or damage to the property or something like that.

    NoNameAvailable:

    [The bank] has said that they will release funds in phases as work is being done.  But this is a HUGE waste of everyone's time.  The actual work time is expected to take less than 2 weeks.  But with all the money being held and the fact that we are now expected to call each time someone nails to things together, wait 2-3 business days for someone to call back and schedule an inspection, wait for the inspection, wait for the inspection report, wait for the release of more money, then get back to work, this job that could have already been finished will most likely be finished before summer is over - and that is not sarcasm, that is the word straight from [the bank].

     

    I made reference to a claim I had on my own house a while back. My mortgage was with BOA and that's exactly how the insurance payment was handled.

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 05-23-2011 9:08 PM In reply to

    to NoNameAvailable

    Apparently you did not notice that I removed all names from your first post, explaining that the Rules of this site prohibit mentioning them.

    When you joined this site, you stated you had read and would post in keeping with its Rules, the end of the first of which says, "Please refrain from posting the names or contact information of other individuals or businesses."

    Please post in keeping with this Rule.

    Thank you.

     

  • 05-24-2011 8:53 AM In reply to

    • keemom
      Consumer
    • Not Ranked
    • Joined on 05-23-2011
    • NC
    • Posts 28

    Re: Insurance Company and Mortgage Company withholding funds

    I used to work for a mortgage company, and if a claim is over $10,000 this is exactly how it is handled, by both the insurance company and mortgage company.  I'm sorry it took so long for the adjustor to come out and for you to receive the first part of the money, but that is how it will continue.  All contractors are aware of this and will work with you on being paid in increments.  If not, you don't have a contractor that works very often so find a new one!  The insurance and mortgage companies have to protect themselves, and since they are the ones with the money, you get stuck having to deal with it.  It sucks and it's difficult, but it's what everyone goes through.

  • 06-04-2011 12:25 PM In reply to

    Re: to NoNameAvailable

    My apologies for posting outside the rules.  To say we've been distraught by this whole situation is no excuse, but that is the reason.  I've talked to so many different people about this, and the rules are different in each place.  It won't happen again.

    Having gotten someone to show me the appropriate place in our mortgage that allows the lender to withhold these funds (mainly worded as "per standard insurance clause", which explains nothing on the surface but allows them to get away with it), I have to accept that the lender CAN do this.  I still do not understand why they would do this, since the property is deteriorating with each daily, literally - we're measuring the ceiling and it's falling in further each day.  You would think it would be in their interests to minimize the damage, but of course they are merely interested in their money.

    I do have one more question.  We finally got to a person who could actually do something about this and sent our paperwork to a "core escalation team" to reconsider releasing more than the $10,000 initially.  We double-checked with this supervisor to make sure we had sent in all the documents and that their detail was enough to be reconsidered.  We were still turned down.  We still believe that the lender thinks this whole claim is for $15,000 rather than $28,000, since they apparently believe our main contractor can draw materials on a job of over $20,000 for about $5,000.  This is not a work-a-little-release-a-little issue.  They have now told us that they will not release any more money until the job is 95% complete per their inspection.  They really expect 95% of the work to be completed on less than 1/4 of the money approved by the insurance company and 1/2 of the material draw given.  I understand them wanting us to haggle with the contractor, but HALF?  We gave them the detail that shows on 5 grand, the contractor will literally have to put forward his own cash to get the materials.

    What disturbs me is that not only has the lender told us we have no way to appeal, provide more documentation, or have any other recourse to obtain more than the $10,000 - they do not wish to hear from us until 95% of the work is completed.  I asked them to put the decision and their reasons for it in writing, along with their statement that we have no recourse for further consideration.  They refuse to put ANYTHING in writing.  When I said I needed something on paper to show my contractors, the lender says they never put anything in writing.  I asked what paperwork I would receive that proved they had even made a decision and was told my check would be the only paperwork they would send me.  They refuse to put anything in writing and refuse to let me record phone conversations - other than my phone bill and my Fed-Ex receipt, I have no proof that I have even talked to them.  For all the good it's done, we might as well have sent the check to them without anything else and sat back - we would have achieved the same result.

    We have now applied with FEMA for assistance, which is doubtful as they do not consider our situation an immediate emergency.  However, FEMA requested all paperwork filed thus far, including the lender's statement as to why they are withholding funds.  We told them the lender has refused to provide anything in writing except the check, and FEMA was surprised and confused.  Now, to even be considered for FEMA assistance, I have to provide this letter from my lender, which my lender has refused to send.

    Now what?  Can a lender refuse to put ANYTHING at all in writing, even when the federal government demands it?  Is there anything I can do to press the lender to do so?

    Thank you all for your patience with me.  At this point, we do not know how we can even start the repairs. We've spent the last 3 weeks doing everything the lender asked, despite being told something different by each of the 8 people we have now talked to there.  And still we're getting stonewalled.

  • 06-04-2011 1:51 PM In reply to

    Re: to NoNameAvailable

    NoNameAvailable:
    You would think it would be in their interests to minimize the damage, but of course they are merely interested in their money.

    That's correct.

    The lender cares only about its corporate policies and only about what's happening now and not what could potentially happen in the future.

    NoNameAvailable:
    What disturbs me is that not only has the lender told us we have no way to appeal, provide more documentation, or have any other recourse to obtain more than the $10,000 - they do not wish to hear from us until 95% of the work is completed.  I asked them to put the decision and their reasons for it in writing, along with their statement that we have no recourse for further consideration.  They refuse to put ANYTHING in writing.

    Why should they? They don't have to. And getting it in writing isn't going to change anything.

    NoNameAvailable:
    They refuse to put anything in writing and refuse to let me record phone conversations

    In TN you don't need consent to record a conversation to which you are a party.

    http://www.rcfp.org/taping/states/tennessee.html

    Trouble is, getting it on tape isn't going to change anything, nor is it going to give you any legal recourse. You've already figured out that the loan contract gives the lender the right to hold the money until the work is done or dole it out as it sees fit. NOTHING changes that. You can get 80 people on tape or in correspondence if you want to, but it won't change anything.

    NoNameAvailable:
    We have now applied with FEMA for assistance, which is doubtful as they do not consider our situation an immediate emergency.  However, FEMA requested all paperwork filed thus far, including the lender's statement as to why they are withholding funds.  We told them the lender has refused to provide anything in writing except the check, and FEMA was surprised and confused.

    FEMA is always surprised and confused. Remember how those morons reacted to Katrina. Don't expect any better.

    NoNameAvailable:
    Now what?  Can a lender refuse to put ANYTHING at all in writing

    Of course the lender CAN do it, it already DID do it.

    NoNameAvailable:
    even when the federal government demands it? 

    It's not the federal government that's demanding it, it's some surprised and confused federal bureaucrat asking for it. And that has nothing to do with the lender.

    NoNameAvailable:
    Is there anything I can do to press the lender to do so?

    You ask the surprised and confused federal bureaucrat to call up the lender and "demand" it. I wouldn't hold my breath waiting for that to work.

    NoNameAvailable:
    At this point, we do not know how we can even start the repairs. We've spent the last 3 weeks doing everything the lender asked, despite being told something different by each of the 8 people we have now talked to there.  And still we're getting stonewalled.

    I'm sympathetic because I went through it myself and had to front the money to get my repairs started.

    You are just going to have to accept that this is how it is. You can vent all you want, but you'll need to somehow figure out a way to get the money to get the repairs done and that's that.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 12-01-2011 12:02 AM In reply to

    • bjujubb
      Consumer
    • Not Ranked
    • Joined on 12-01-2011
    • AL
    • Posts 1

    Experiencing the same problem

    Hello,

    After reading the above post, I felt compelled to continue with my own question. I have experienced the same as the above post. April 27, 2011 tornado hit house and property, month later  plus haggle with insurance, then received partial check, mortage company provided me with a commit number for the check and I traveled 50 miles to the nearest place to have the mortage company endorse the check. Now, here is where my story is different.

    My house and 1acre is mortage, but the other 3 acre and out 2 buildings are not on the mortage property. I received some damage to the roof of my house, but the tornado completely destroyed one of the out buildings and roof damaged on the 2nd building, again these building and land is not mortaged.   I received 19K from the insurance to rebuild and repair the out buildings, but only 2 thousand to repair the damage on the house.  The mortage company requested that I send all documentation backing up that the majority of the check was for non-mortage property and they endorsed the check... no problem.    The amount paid by the insurance company for the roof of the mortage property was not enough to repair the roof properly, so we refiled the roof claim. The new insurance adjuster agreeded and issued another check that would cover replacing 1/2 the roof of my 8 yr old house. My husband and I decided to replace the whole roof and pay the difference ourselves. I followed the ever changing rules from thmortage company, just like the poster above. The roof was completed, the mortage company sent out an inspector who stated all was good. The mortage campany said that we needed to have a waiver signed by the roof contactor and a certificate of completion  before they would release the final draft. I faxed them 9 time the forms and they say that they are unable to release the final payment because the amount that the roofer sign off on the waiver does not match the complete amount of the total claim.

    They(the mortage company) told me that the contractor, myself and the notary needed to sign a waiver stating that the roofer completed over 20 thousand worth of work (the total amount of the insurance claim). My argument is that the roofer only provided the work for the mortage property (house roof) and that was only 8 thousand and the roofer was not going to sign a document stating that he did more work than he provided, nor more than what he was paid. I don't know what to do now, and the mortage company  still holds the final draft. Any suggestion?

  • 12-01-2011 12:41 AM In reply to

    Re: Experiencing the same problem

    I don't know what to tell you.

    My own experience with a variety of mortgage companies over a period of several decades indicates that people who work for mortgage companies are morons.

    Might be worth it to consult an attorney who can write a scary letter to somebody higher up in the mortgage company's food chain and get some results.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 05-25-2012 7:48 PM In reply to

    • janellio
      Consumer
    • Not Ranked
    • Joined on 05-25-2012
    • TN
    • Posts 1

    Re: Insurance Company and Mortgage Company withholding funds

    First your post reminds me of what happened to us in March of this year.  We had a tornado take our home, van and practically everything we own was gone or damaged.  We reported the tornado damage to our agent on Friday morning and he informed us he "didn't work on the weekends".  We had to find someone to tarp our home (over the tremendous tree laying across it).  After we finally got him to come out four days later he told us our house could be "re-furbished".  We were both very sceptical as the floors were shakey and we have a basement.  The following week a "big wig" from the company came to stroll around and tell us the house was "saveable"...even with just 3 walls, no roof and water damage everywhere.  Then he tried to tell us he could not remove the trees over our driveway (so we could get our things out of the basement) because they were not on anything valuable.  In real life they were laying over and crushing our van and cars not to mention a new fence we had put in last fall.  The adjuster finally got around to removing the huge tree off the house via a crane.  We signed nothing.  When we saw more and more things that concerned us  we were met with  contempt from them.  After I got thinking about the fact the rafters in the basement (main floor rafters) were looking like a swayback horse I called the country building inspector and asked him if he would come look at it for me.  Suprisingly he agreed to do it.  Several days went by and he came in and stay about 10 mins...just long enough to go downstairs and turn around to get out of there saying "this is very unsafe".  "This home has been compromised and I will NOT issue any building permits on it".  The rafters had shifted.  That was great news as we knew what we were seeing could not be repaired but had the feeling the insurance company wanted to do a quick fix and be done with us.  Now the next battle began...getting them to pay off on the policy.  They squirmed for weeks.  We finally had to get an attorney involved.  These insurance companies have NO IDEA what they put people through.  We have a multihanciapped son who requires special equipment for bathing and everything in his life.  We were having to lift him even though it is very dangerous to do so for his bones to transfer him to the chair and bath chair.  At our home we had equipment that lifted him (correctly).  Not only was this a problem that we needed to get into another home quickly to resolve (apartments won't allow special equipment to be installed in their place) but the unknown factor of when we would ever be in another home played on our minds constantly.  There is a different "phyqie" when you want to move and are excited and when you are forced to move out of a place you still love. 

    We finally recieved our "settlement" but took way less than we would have gotten just to have this over with.  We have also found another home and bought it last week.  Now our latest problem we never thought a thing of until today is the insurance company that contracted to have the huge tree removed at the tune of 7 thousand dollars and the tarps put on the house has NOT paid the companies.  These companies are now calling use for payment.  We had NO idea the insurance comany did not pay the outstanding bills before we settled (who would).  Since we did not contract with these companies I don't see how they can hold us responsible for the bills.  True it was our address but the insurance company arranged the removal...not us.  Has anyone encountered this delimma before?

    Thanks

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