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Howard Said:

Who should I contact about Mortgage Fraud?

We Answered:

call the deparment of justice.

Salvador Said:

Possible Home Insurance Fraud - What to do?

We Answered:

Well, there are two things going on.


First, it doesn't sound like the tenants actually committed any insurance fraud. Getting the money to fix the damages, and NOT fixing the damages, is NOT fraud. Telling the insurance company they own the home, when they don't, IS fraud. If the deed hasn't been transferred to them, it's under contract, but still YOUR house.

Second, you are probably going to have a VERY hard time getting a claim paid from your insurer, for this damage, for two reasons: 1. If you had a HOMEOWNERS insurance, the home was NOT owner occupied. Effectively, it's a rental property, and your tenant damaged the house. Wrong kind of insurance. And 2. you have a duty, under your policy, to notify the insurer PROMPTLY of any claims. You did NOT comply with that duty.

I would disagree with your adjuster friend - although there were two policies on the property, so normally you'd look at a pro rata sharing, your insurance, IF they paid, would pay their half TO THE OTHER INSURER, not to you. And, there is a huge arguement that the other insurer should NOT have paid at all, since that tenant doesn't own the property, legally.

I would file the claim with your insurer, and let the chips fall where they will. You might end up getting cancelled, as the property isn't owner occupied. With three fire claims, you will NOT have an easy time getting replacement coverage, but even with TWO fire claims, you're going to have major problems - even if the claims weren't paid out to YOU, they were filed on YOUR property. And you're probably going to need a lawyer, because the property "buyer" has disappeared, and you might not be able to legally rent to someone else, either.

Becky Said:

Am I required to give information to a mortgage fraud insurance investigator?

We Answered:

You are being investigated for a felony crime, you need to hire an attorney.

Herbert Said:

what can i do if im a victim of mortgage fraud?

We Answered:

Get an attorney.

Kathleen Said:

Is this Insurance Fraud?

We Answered:

I hope that you have a contract (signed by you and the homeowner) which outlines the scope of the work you were to do on the property and the amount that you were to be paid for the work. In terms of whether it is insurance fraud, up to now it does not sound like it. If she signs your name onto that check or is party to someone else signing your name onto that check she will probably be guilty of forgery and grand larceny depending on your state law. Since it sounds like it has been sometime since that 2nd check was received by her, I would contact the insurance company to determine if it has been cashed and if it has inform them that you did not sign the check. The insurance company will work with you and involve the authorities if the check has been cashed.

The bottom line of all this situation though is that you need to file a mechanics lien immediately to protect your interests in the labor and materials that you have invested in her home. The bank will not do this for you. The only thing that they will do is foreclose and it is possible that if you have not filed the mechanics lien prior to their foreclosure you can forfeit your rights and lose your money.

You need to contact the Recorder of Deeds in the jurisdiction where the house is located and file the Mechanics Lien with them. You will probably need a full accounting of the money that you are owed for work completed to date, a copy of the signed contract and a copy of your contractors license to file the Lien. Make sure that when you include the total amount owed you include the words plus interest in the amount of ____% (include whatever is the maximum allowed in your state for these situations -- where I am it is 18%) until paid in addition to all costs. Most jurisdictions will also have you a execute the Mechanics Lien unto a specific form which the staff at the Recorder of Deeds office should be able to give you and explain how to fill it out. Once the Mechanics Lien is filed, you will need to file a lawsuit against the homeowner within a specific state mandated time frame in order to enforce the mechanics lien. Based on what you have described you will probably have to file a regular civil suit as the amount that you are owed is probably more than the maximum allowed for Small Claims Court. You can file suit yourself, i.e. go pro se (meaning plead your own case without an attorney) but I would advise you to at least pay for a one hour consultation with an attorney that specializes in contract and or real estate law to inform yourself of your specific state regulations.

I hope this information helps and wish you the best of luck with this unpleasant situation.