Your Questions About Check My Mortgage

Charles asks…

why is my claims check made out to both me and my mortgage company?

Had some damage from a leaky dishwasher which has caused over $13000 worth of damage to flooring. After weeks my adjustor has finally said that he is sending out a check next week that will made out to both me and mortgage company, Why do they do this since I am the policy holder? Secondly mortgage company told me that they will keep the money and disperse upon reciept of contractor contracts for repairs. What if my hubby and I wanted to do some of the work ourselves to save money, will we get any left over amount back? If not, makes no sense to try and do it and save the money! Lastly we have been sending in our receipts to for eating out to the adjustor as he directed. How can that go to the mortgage company?

admin answers:

Easy Answer: Because you own the part of the house that is paid for and the mortgage company owns the part you have not paid for.

Longer Answer: because the house is collateral for a loan that you took out with the mortgage company. As such, the mortgage company has an interest in the home and in making sure that the damage is properly repaired. If you don’t repair the house and stop making your payments – they foreclose and the damaged house now belongs to them but you pocketed the money.

Also – your insurance policy has a Loss Payee Clause that says the insurance company has a legal duty to protect the mortgage companies interest in the house. They do that by putting the mortgage company on the check.

Regarding the eating out: You have to eat whether you have a claim or not. The Additional Living Expense only covers the increase in expenses from what you normally incur. They don’t pay for every bit of food or drink that go into your mouth. They also don’t pay for you to eat steak every night.

Mbrcratz gave good advice. You want to be reasonable in your eating out.

Usually the check for additional living expense is issued to the insured with out the mortgage company name. The adjuster may be waiting until all the repairs are done and you are back into the house and then settle up the additional living expense claim in one shot.

Betty asks…

How do you manage your finances?

Am posting this in the wedding section since I believe people should have the finances talk before getting married. My husband and I got married this past May, but moved in together in spring 2010. Initially we had planned on keeping our finances separate, with a joint checking/mortgage account for paying bills. Now more than a year later, our finances have evolved to depositing our paychecks into the joint checking. (Before paychecks were dumped into our separate checking.) Credit cards are a combo of merged and separate accounts.

How do other couples split finances?

admin answers:

When we first got together, we had separate accounts

now, we have a joint checking and saving account

checks are deposited there

i don’t like this arrangement and will change it soon so that my check will be deposited into an account that i only have access to

the reason i want to do this is that my husband is constantly taking out money

peace

Robert asks…

Bad situation–allow bank to cover check or be 30+ days late on mortgage?

I cannot decide which to do. I have been with my bank for over 13 yrs in good standing. I have only had a few instances in that time where I had insufficient funds to cover a transaction. I know they will not return a transaction unpaid to recipient up to $1500. because of my history. I have also NEVER made a 30 day late payment to my mortgage. Here’s the problem– we have undergone a pay change that will now result in a paycheck being received when our mortgage will be considered 34 days late. I have contacted the mortgage company 2x, and they will do NOTHING to help. I have about $1k of the roughly $1500 needed, but will definately be short by $400+ the day the payment will go 30 d. I assume the bank will pay out the difference to the mortgage company and hit me with NSF fees. Do I pay it, bounce it on my end and accept the fee, or do I just allow the 1 time late on the credit report? I will need to apply for a car soon, so credit matters, but bouncing terrifies me. Which is worse?
Cannot get the overdraft line of credit you mention- score too low since cards are all full. We had a fire in Feb that displaced us for more than half the year. We lost ALMOST everything, but are still fighting the insurance. We have replacement policy, which is good, but also means we pay out first and they reimburse-taking their sweet time to do it. We are waiting on more insurance money, but it won’t come in time to help this.

We know our financial status isn’t good- I am just asking which is WORSE if you can’t get credit or a loan anywhere to cover it.

admin answers:

Have you tried taking money out of equity? If not i am sure you would get a great interest rate from your bank when applying for a small loan to get by…

Ken asks…

my claim check from my homeowner’ insurance co. put my name and the mortgage name. how do i deposit the check?

admin answers:

This is normal practice. Contact your mortgage company, they will know exactly what to do. They do this all of the time (and each has a different method to handle it).

They do this because if you spend the money and don’t repair the house, the mortgage company can come along and force them to pay again.

Mandy asks…

My Mortgage company refuses to sign my Insurance repair check. What’s worse…?

Our mortgage company refuses to sign our Insurance repair check they say we have to sign and send it to them. They printed a new check, made it payable to me and the contractor for half the money, and when the repairs are complete and inspected they will send the other half of the money the same way. We have another check, and don’t want to follow this same process. This holds up the repairs, it undermines our authority over our home with the contractor, it takes away our financial control over our home, and the right to change contractors if we want (since the contractor is making us wait because the money is his and he knows it). Is this process legal? Is it against state regulations? Is this considered unfair, and unethical practices? It sure feels and looks like it. We didn’t buy our home 1 year ago for this treatment. Do we need an attorney? Do we complain to a government agency? Do we just send a certified, notarized letter saying we want them to sign any future Insurance checks, and threaten court action? We have not signed any agreement, nor have we ever seen this agreement at the closing of our home purchase. The Mortgage company admits we didn’t sign anything as well. The check is less than $3500, but the principle is important to us. Please point me in the right direction.

admin answers:

The mortgage company is making sure the home is repaired. Think of it this way, you own the part of the house that is paid for— they own the part of the house that is not. They have a financial interest in the house. They have a financial interest in making sure the repairs get done. There concern is that you will not get the repairs done – fall behind on the payments and they will foreclose on the house. Given the high fore-closer rate right now — that’s not an unrealistic concern. I am sure mortgage companies have been burned by this situation too many times and are starting to crack down.

As far as your policy goes, it has a loss payable clause that says the insurance company HAS to protect the mortgage companies interest. They have to put the mortgage company on the check.

So yes, what the mortgage company is doing is legal.

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