Get your repairs done quickly to minimize additional damage.
Let's say that your home has been damaged, whether by natural disaster, fire, water or some other cause, and you have made a claim on your homeowner's policy. After you have gotten the quotes and inspection required by the insurance company, they have finally sent you a check to cover the repairs, but you see that it is made out to both you and your mortgage company. In order to deposit it and use the money to pay for repairs, you must get your mortgage company to endorse it.
Instructions
Contact Your Mortgage Company
1. Call your mortgage company and ask for their insurance claims department as soon as you receive the insurance check. Make sure you write down the name of the person you have spoken to and get his or her phone extension for follow-up. Tell the representative that you made a claim with your insurance company for damage to your property and that you have a claim check made out to you and the mortgage company jointly.
2. Ask the mortgage representative how you can get the check endorsed. If you have already paid for some repairs with your own money, tell that to the representative. This will avoid the extra delay and hassle of having the mortgage company keep the money and reissue a check made out jointly to you and the contractor. Also, if the state of the home is hazardous or the unrepaired damage could result in additional damage to the home, be sure to mention it. The mortgage company wants to protect their financial interest in the property so when you tell them about these sort of issues, it motivates them to endorse the check and send it to you faster. If you have put the mortgage company on notice of potential health risks, they will move faster to avoid potential liability in the event someone gets sick or injured.
3. Write down a list of the documents the mortgage company wants you to send them and the address of their insurance claim department. Gather the documents together with the check, and send them in an overnight envelope or by certified mail. Do not endorse the check before you send it to them because then someone other than you could cash or deposit it.
4. Follow up by tracking your package to make sure the mortgage company received it, and by calling the representative you talked to originally. Get his or her email if possible, and continue to call or email to get the status of the endorsement until you actually receive the check.
5. Begin the repairs. If the claim check is above a certain amount, usually $5,000, the mortgage company may insist on holding part of the money and giving it to you in increments. They may require periodic inspections to make sure you are using the money to repair the property before releasing the next portion of the insurance money. If there are any steps that cost more than the incremental amount and you need more, let them know. For example, when replacing a roof, usually the roofer will need a large deposit to begin work and this may be more than the first incremental payment. Let the mortgage company know that the repair cannot begin until you get the full amount of the deposit.
Tips Warnings
Make sure your mortgage is in good standing before asking the mortgage company to endorse the insurance check. Otherwise, they may hold it, making it difficult for you to pay for the repairs in a timely manner.
Tags: mortgage, company, endorse, insurance, check, repairs, mortgage company, send them, your mortgage, your mortgage company, additional damage, check made, check send
