Legal Question in Real Estate Law in Arizona
I live in Arizona. My house that I own and am current on was recently damaged in a hail storm. I filed a claim with my insurance company and they wrote a check to me, my wife and the mortgage company. I sent the check to the mortgage company and they returned it with their endorsement and some forms about having an inspector come out and check out the repairs when done along with a satisfaction with the repairs form and a lien waiver for whatever contractor would be doing the repairs. My wife and I were already planning on moving and letting the mortgage company foreclose on it because while I can make the payment, there isnt anything left over to buy clothes for my children or for any kind of presents for christmas and birthdays. I barely have enough money to pay the bills, put gas in the cars and buy groceries. Prior to the economic downturn my I worked overtime on a regular basis (65 hr work week min.) but that has come to a halt to where I am lucky if I work 40hrs in a week. My question is what are the ramifications of me leaving the house and not getting the work done to the roof? Honestly , I look at this money in my checking account and in my current situation, I could really use it. Please help with any advice
1 Answer from Attorneys
Regardless of your financial circumstances, you are duty bound to spend the money and make the repairs as provided by your lender. Your failure to do so may constitute theft of that money, or at least a breach of your fiduciary duty to make the repairs to the house, which is the collateral for your loan. Your putting the money in your pocket, would be the equivalent of you damaging the house in the same amount, and the lender would be well advised to go after you personally for damages.
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