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Old 07-03-2007
libranikki libranikki is offline
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Join Date: Mar 2007
Posts: 4
Angry Fighting the MORTGAGE company!

Hello. I need some guidance.
We filed a sinkhole claim and the testing was done and the sinkhole was confirmed. We spoke to the insurance company today and were told that as soon as the contractor we chose submits the signed contract, checks will be cut.
We are to get a check for the cosmetic damage that is more then 10,000$.
I contacted my mortgage company to let them know that we would be overnighting them the check to sign and send back as soon as we receive the check.
The mortgage company told me that they will issue the money in increments.
The first 1/3 of the check will be issued. With that 1/3 we are to complete 50% of the cosmetic work. After that we are to contact them for the second 1/3 and they will send an inspector out to make sure we did the work properly. If we did, they will release the money.
After that, we are to contact the inspector again to receive the rest of the money providing we have done the work properly.
Is this legal?
What claim do they have to the money?
How am I supposed to repair 50% of the house with only a few thousand dollars if the damages are more then 10,000$?
How would they even know if the work was done properly if they have never been out to see the original damage?
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Old 07-04-2007
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admin admin is offline
Join Date: May 2003
Posts: 274

The mortgage company is demanding control of the cosmetic money because on your insurance policy, you are not the "loss payee" the mortgage company is. This means that when ever there is a payable loss in conncetion with that mortgage, the insurance company is directed to dispurse the money to your lender and not you.

I would suggest working with a contractor that can live with the payment plan set forth by the mortgage company.

Just as a note $10k sounds a little low for the cosmetic money... I'd have that number checked before you allow any work to commence.
Email: sinkholeorg@hotmail.com
Web: http://www.sinkhole.org

Michael Mosher
Champion Foundation Repair
Phone: 813-242-6454
Fax: 813-242-6614
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Old 07-05-2007
libranikki libranikki is offline
Junior Member
Join Date: Mar 2007
Posts: 4

Well the cosmetic money is actually higher, quite a bit higher, plus the cost of the driveway, but 10,000$ was an easy number lol.
I just dont understand how I can complete 50% of the work on 1/3 of the money. To replace my floors alone is going to come to more then 1/3.
The mortgage company is so firm they wont even budge a few hundred dollars more to hire someone who can at least start the job. We have terrazzo floors and the carpet has to be ripped up, the floors need to be repaired, and new carpet has to be laid.
The adjuster told us it was more then 1/3 which is not 50% of the damages.....I hope that made sense.
Is there any way to get around this? I just dont feel it is right that my mortgage company, who has never been out to inspect the damages, has any right to tell me if Im fixing the job to their standards if they wont give me the money to do so.
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