homeowners insurance claims advice
What right has my mortgage company has to lay hands on owners MI Ins. Check the applications?
I had a fire in your house and my mortgage company is giving me the run on sending my first draw, after having done everything they ordered. It seems to me this is a scam by mortgage companies to maintain control insurance claims, making interest on my money, and serve it to me when and how to prepare. WHAT? Does anyone have any advice on this or experience (I hope not) with this situation. Not complaining, just do not understand why seem to be delaying the issuance of my money to repair. The contractors have to pay and the MC kept the process, not me. Thanks for all your answers!
Each insurance company will make the mortgage company on the check, if the damages are more than certain amount. For most people, is $ 5,000.00. This is a safety device for the insurance company and mortgage company. Lets say, for example, have an older home, not worth much, but to rebuild after a devastating fire would be more than the market price of housing. Without the mortgage company on the check, the landlord can only take the money and leave home to the mortgage company. In some cases the mortgage company could force the insurance company to pay the credit back for them because they are insured in politics also. That's the power that the mortgagee clause of the policy gives them. They have a great interest in ensuring that the house is repaired.
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