Legal Question in Consumer Law in Missouri

Mortgage company dispersing insurance damage payment

We recently had a tree fall on our roof and damage our house. The insurance company settled the damages and wrote us a check with our names and our mortagage company's name on the check as well. The mortgage company says to send them the check and they will disperse the funds to us only in increments. The check we got was for $11556.00. They say when 50% of the total amount is done, they will send someone out to inspect the work and thrn mail us a check. Then when 95% is done they will mail us out the balance after it has been inspected again. All these contractors will be waiting for the rest to get finished working before they get paid. For example; My roofing bill is $5300 but he has to wait until someone else finishes a job so that 50% of the work, $11556 @ 50%= $5778 is done. It seems ridiculous. Then an inspector comes out, then sends the mortgage company info so they can send me a check. Is there anything I can do about this?

Thank You,

Don--name removed--


Asked on 12/08/05, 2:07 pm

1 Answer from Attorneys
Anthony DeWitt Bartimus, Frickleton Robertson & Gorny, PC

Re: Mortgage company dispersing insurance damage payment

I would take your mortgage loan contract to an attorney and have him read it. If the contract gives them the right to control disbursement of funds, then you'll have to comply with their procedure. My guess is that the contract does not control this, and that you are entitled to the full amount of the insurance payment at this point. After all, why should they get to keep the interest on YOUR money?

It would be worth having a lawyer look at this to figure out if you have to put up with this kind of crud or not.

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Answered on 12/08/05, 2:21 pm


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