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I am a homeowner in Long Beach and can speak for many of my neighbors who are absolutely disgusted at the way our mortgage companies are holding our monies hostage. Is there anyone who can give our group some legal advise as a whole?
Leonard Bauman February 11, 2013 at 12:05 PM
If the insurance amount is $20,000 or less, the mortgage company should be releasing the money to you by endorsing the check. The mortgage company must sign the check FIRST, do not sign the check first!. If you sign first and give the check to the mortgage co., then they can cash it and keep the money to use against loan balance past due. In addition, they can pull strings with the money and treat you like a puppet with no backbone. If the amount is $20,000.01 or more, the mortgage company, at its option, may release the money to you in whole, or in part. If you have a high amount of equity like greater than 50%, they may trust you to do the repairs and give you all the money. If the bank owns the home more than 75%, the bank will keep the money and will pay it out to you in stages 20% or 33.33%, after the bank inspects the property to make sure you did the required phase of repairs. Please note, any money for your personal property that is included in the check, you must denote to the bank and the bank cannot withold it. For example, a $25,000 check that has $15,000 personal property payment; the bank must release to you the $15,000 for personal property PLUS the $10,000 for structural damages. Why the $10,000, because it is less than $20,000.01, and must be released to you per Gov. Cuomo's mandate to insurance companies. Hope I helped you and god bless you and your family. Good Luck! Let us know how it goes!
Ipick February 11, 2013 at 03:41 PM
Thank you so much for all that helpful information. My mortgage company hasn't even released my advance check yet and it was $20k.
Leonard Bauman February 13, 2013 at 09:07 PM
You are very welcome my friend. I will keep you and your family in my prayers to make sure you recover every dime due you and rebuild your Long Beach home as best as you can. Godspeed.
Seasideboy March 07, 2013 at 08:51 PM
Boycott banks like Chase who are screwing their neighbors,

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