NLIC.org

Christy Said:

Can a mortgage company keep money from a homeowners insurance settlement without paying contractor?

We Answered:

file your contractor's lien on the property immediately. [you did file the necessary building permits and forms, yes?]

then sue. you argument in court is that because your work was necessary to get the house into salable condition, your lien should be paid before the mortgage, just as if the mortgage company had foreclosed and hired you to repair the property.


and get a competent attorney -- who ever drew up your present contracts seems to be a fool. your contracts should have required the owner and mortgage company to bind over the payment to you in advance of you starting the work, with payment to be completed after the roof is inspected and accepted.

June Said:

What benefits would a mortgage company have to delay the closing of a home sale?

We Answered:

You are being lied to for some reason or another. If you have a signed purchase and sale agreement with yours, the seller's and your respective representatives. Then there is nothing the seller's mortgage company can do to stop the transaction. In fact they have nothing to do with it. Once your lender has completed the loan packet and the appraisal, the approval, title searches and inspections are done. Then it's just a matter of drawing doc's. That is when the escrow company will get a hold of the current lien holder on the house and get the appropriate payoff's.

So agree with what the other person said, that perhaps they are trying to hold out for another offer. However if you have a finalized purchase and sales agreement then they are putting themselves at risk for a law suit particularly if you gave them Ernest money with the P&S. It also sounds to me like you are not working with a Realtor who acts as your buying agent which is a huge mistake. Never ever under any circumstances deal with a selling agent without obtaining the services of a realtor to act as your buyers agent.

Katie Said:

A contracting company I work for is taking check written to homeowner and mortgage company. Homeowner is endor?

We Answered:

YES. And if the homeowners also know, they are also guilty.

And if the bank(s) cash these checks, they are negligent and can be held liable for the money.

Corey Said:

How can I get mortgage company to endorse insurance check before work is done?

We Answered:

You can't. But you could have your adjuster reissue the check directly to the contractor.

Any contractor should be willing to work with you on this - you'll likely have to pay them your deductible, directly, but most REAL contractors that don't scam you, should be willing to take payments as the job completes.

Erik Said:

Our mortgage company is not applying our payments and have sent us to collections, where can we get help?

We Answered:

Get a lawyer, show him the information if you can convince him that it is what you say odds are all he will have to do is write a letter to your lender's legal council. He can also stop the collection company.