fire,ins, pay lender they not pay to fix,demand pay in full

by hvacdnright » Mon Jan 17, 2011 05:09 pm

what course of action can we take?lender demanded we pay off note after fire,ins. says lender must kick back money to repair house,they refuse now we cannot do anything and ins. off the hook for replacement cost because we dont have money up front to pay for repairs,are we screwed or do we have to sue mortage lender or do we remain homeless,because mortage co. is greedy and will not work with anybody,we had to borrow additional money to pay off mortage that they demanded or they were going to foreclose even though we were current on payments.

Total Comments: 1

Posted: Mon Jan 17, 2011 09:02 pm Post Subject:

Sounds like a BREACH OF CONTRACT issue with your mortgage lender. You'll need your mortgage documents and (probably) an attorney to sort it out for you. If you were current in your mortgage payments, the lender should not have used the money toward the loan balance, and the insurance check should have been made out to both you and your lender. If the home was a total loss, then there should have been some discussion between you and the lender about the insurance proceeds.

Contact an experienced REAL ESTATE attorney ASAP.

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