My insurance company sent me a check for damage to my house.

by whatever » Fri Feb 27, 2009 02:22 am

I had a kitchen fire. I received my check from the insurance company within 2 weeks, but the mortgage company has had it for almost 2 months now. I am behind in my payments, but am in a program with them to refinance. The payments on the new arrangement are paid on time and the paperwork for the new plan is signed. How long are they allowed to hold the check for? I have a son who had a transplant and he cannot stay in the house much longer in this condition.

Total Comments: 5

Posted: Fri Feb 27, 2009 03:45 am Post Subject:

Have you called and asked them for the status?

Posted: Fri Feb 27, 2009 10:46 am Post Subject:

Is the repair work still on? I think they are holding it for the time the repair work is done. Please, go ahead and ask them the reason. And, I think we need more information to answer your query.

Posted: Fri Feb 27, 2009 12:19 pm Post Subject:

I have no doubt that you're pretty much covered even when you're under your current refinance plan. But if you're pointing us to your a current refinance plan sign-up papers, then I don't think it has got anything to do with your coverage as such. In order to pursue it you'd need to be sure of your payment status in their records.

Posted: Fri Feb 27, 2009 03:37 pm Post Subject:

I would give them a call and ask why they are holding the check. The other posters could be right and they are waiting for the work to be completed. The best way to find this answer without guessing is to give them a call and you will get your questions answered more swiftly. Hope your son gets well soon. Good luck.

Posted: Sat Feb 28, 2009 01:49 am Post Subject:

Every mortgage company handles this differently, so yes I would call them and let them know you would like to get the repairs started. Typically mortgage companies that are holding the check will issues 1/3 of the money or 1/2 until the repairs are complete or until they conduct inspections to release further funds. Depending on the size of the loss, some companies want to make periodic inspections during repairs to make sure they are progressing and being completed properly.

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