Legal Question in Real Estate Law in Missouri

BACKGROUND - Our mortgage is owned by Midland Mortgage. We had some hail damage to the house in the last 12 months. We were given an estimate for repairs by State Farm. Midland requires us to sign our insurance check for repairs to them. Due to the numerous complaints about unethical behavior by Midland Mortgage, we chose not to perform the repairs and forfeit the check. Many complaints against Midland are related to the homeowner having to come up with money up front for repairs even though Midland is holding the signed check from the insurance. And, Midland allegedly makes it very difficult to satisify their requirements to be reimbursed with the insurance money. The hail did shorten the life of the roof, but there are no leaks and no asthetic damage.
ISSUE - Midland now wants to cancel our homeowners insurance because we have not had repairs done. This would allegedly cause issues if we chose to sell or refinance, not to mention there would be liability issues, etc. Can a mortgage company legally cancel the homeowners insurance? The house is in Missouri.
Thanks.

Asked on 6/10/12, 10:47 pm

M. Scott Montgomery the montgomery law firm llc

0 users found helpful

0 attorneys agreed

No. And midland is not entitled to keep your check without giving you a credit.

U need to hire an attorney.

Answered on 6/12/12, 12:22 pm

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