Homeowners May Struggle to Get Insurance Check from Mortgage Company

When natural disaster strikes homeowners are hopefully protected from the financial loss through home insurance policies.

Homeowners insurance generally covers damage caused by fire, wind, water, and theft. When homeowners first purchase their home they often agree that the mortgage company will be coinsured on the property.

Because of this, when a claim is filed the insurance company will make the insurance claim payment out to both the homeowner and mortgage company.

This means that the insurance check needs to be endorsed by both the homeowner and the lender before it can be deposited and used to pay for repairs. This system is meant to ensure that irresponsible claimants do not spend the insurance money on things other than home repairs.

The mortgage company has an interest in seeing the home repaired to maintain the value of the property. However, many homeowners are surprised to find how difficult it can be to have their insurance payments released by their mortgage company.

In order to protect their interest, banks may require homeowners to submit various forms throughout the repair process, require inspections of the work, and extra bank fees.

According to Consumer Reports, one mortgage holder from Ohio suffered damage to the roof of his home and barn after a period of extreme winds.

According to the homeowner, his insurance agent at State Farm promptly paid out the claim but the repairs to his barn were held up by Haynes Mortgage Company.

Another claimant suggests contacting your mortgage company after filing a claim in order to learn how to have the insurance settlement check endorsed by the mortgage company and deposited in the claimant’s account or an escrow account.

Victims of uncooperative mortgage companies have suffered the frustration of spending hours on the phone dealing with mortgage companies and some have experienced thousands of dollars in losses.

Homeowners who have had issues with their mortgage companies withholding their insurance payouts may be able to file homeowners insurance lawsuit to resolve the issue.

Whether or not a person should bring a home insurance lawsuit is a decision that should be made on a case by case basis with the advice of a legal professional.

Successful plaintiffs who file homeowners insurance lawsuits will likely receive compensation for their hardships. Lawsuits like these also help hold large mortgage companies and banks accountable for their actions and remind these organizations that they must follow the rules and regulations put in place by our federal and state governments in order to protect consumers.

Attorneys are currently looking for potential plaintiffs to bring home insurance lawsuits against their mortgage companies.

Attorneys for these plaintiffs are looking into whether or not mortgage companies wrongfully withheld payment, put up unnecessary hurdles for consumers to access their money, and failed to disclose to homeowners that the mortgage company was retaining the money.

Join a Free Insurance Property Claim Class Action Lawsuit Investigation

If you have experienced difficulty recovering insurance property claim money from your mortgage company, you may have a legal claim. Submit your information now for a free case evaluation. If you qualify, a lawyer will contact you to discuss the details of your case.

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