Legal Question in Consumer Law in Alabama

I had a complete loss in a house fire. My insurance sent a check for a little over half of the rebuild estimate, but I had to send it to the mortgage company since I still owe them money. Now my contractor is ready to work and the mortgage company seems to be doing all they can to delay releasing the money. Every time I call them, I get a different person and different answers as to what I need to send to them. I finally got what they wanted and now they say it is going to be 7 to 10 days before they know if the home office will issue a check. It is the money that the insurance paid out to rebuild my house and the mortgage people act like it all belongs to them and they are giving me a hard time about releasing the money. If they keep delaying and my house doesn't get finished in 180 days from the date of the insurance check (check was issued Sept. 7,2010) , the insurance company will not send the rest of the money for the rebuild. I don't have over $57,000 (this amount is the rest of what the insurance should pay) to put into rebuilding. I can't get a new loan from anyone because I had to file bankruptcy in another case not related to my house. I am still making payments on the mortgage in the amount of $500 per month. When I call them, I talk to someone in Duluth, GA but they tell me the money is in California.

What, if anything, can be done about the finance company taking so long to send out the money? I they keep delaying, I could lose my property and still not have a house to live in.


Asked on 10/10/10, 3:26 pm

2 Answers from Attorneys
Jon Lewis Lewis, Feldman, & Lehane, LLC

You need to write them letters certified and regular mail explaining the situation to them and telling them what might occur if they keep delaying the matter. Also, copy the insurance company on the letter so they will be in the loop. Another thought is to have the insurance carrier talk to the mortgage company. If all else fails, get an attorney to write a letter.

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Answered on 10/15/10, 3:35 pm
James Coleman Murchison & Howard, LLC

Good advice from Jon. Put everything in writing. If you don't get something resolved in the next 10 days engage the services of an attorney and consider filing a bad faith claim against the insurance carrier. This all depends on the facts of the case, but don't delay and put every thing in a letter.

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Answered on 10/15/10, 5:49 pm


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