What Gives My Mortgage Company the Right to Hold My Insurance Claim Check?

This is a follow up to a blog titled;

How to Cash Your Home Owners Insurance Claim Check

Why Can My Mortgage Lender Hold My Insurance Claim Check?

But it should really be just called Part II because since writing that post  it I have received thousands of views, dozens of calls, emails and comments  and complaints which for some reason are directed at me.

What’s ironic is that I wrote the post to save the time from needlessly repeating to people I know who were asking me that same question over and over again.

119 thoughts on “What Gives My Mortgage Company the Right to Hold My Insurance Claim Check?”

  1. I filed a insurance claim 5 months ago. It has been been in half by insurance company. I sent check to mortage company but its been 5 months ago. They finally sent me a check for half the amount of half the amount of the claim. I dont have enough funds to repair my roof.mortage co says they will issue rest of funds after work completed n inspection done. How do i get mortage co to at least pay half? What rights do i have caused its raining in my housr

  2. I have been a loan operations manager for too many years :) Most mortgages have a clause in them that requires you to cooperate with your lender in these instances. In your case, the lender obviously wants control of the funds. We would want the check endorsed by you (and sent to us), if the the dollar amount was large enough. It seems excexxive for a such a small amount.

  3. I have a leak in my shower that is seeping into my bedroom my insurance company settled the claim for $2497.75. I have a contractor who has agreed to take care of all of the repairs for the amount approved. I am concerned because my mortgage company is asking me to endorse the check before I mail it to them for their endorsement. This doesn’t make sense to me. I can just endorse it when they return it to me. Is this normal policy, to endorse the check prior to sending it mortgage company for their endorsement?

    1. Tiffany – first, I’m really surprised that you filed a claim for $2500 in damages given that will impact your rates next year. However, if your lender has a local branch, I would recommend taking the check to their local office and get it signed by a local person.

      1. I’m shocked that you have the arrogance to pass judgement on a homeowner who has paid their insurance premiums and you have no logical understanding of their financial situation. I guess I’m not that shocked – most so called financial specialists are clueless.

        1. Hi Rick, thanks for your comment, as you can see, there have been quite a few comments, I’m curious who you think I’ve ‘passed judgemnt’ on.

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