Legal Question in Real Estate Law in New Jersey

My house, NJ, was substantially damaged, Hurricane Sandy. I bought the house in 08, its fixer upper, small one bed room 1 floor 600 sq ft. I replaced the entire bathroom myself, it was rotten, floor was caving in, i replaced roof myself. Put in all new windows,sheet rock, insulation in half the house. My new mortgage servicer "Seterus" told me that i can not do the required repair work from the Hurricane Sandy damage. They said they don't allow self repair. They are not my original mortgage company, there is nothing in my mortgage contract that states no self repair. My mortgage company has the insurance damage money in escarow. Im now a licenced,insured Nj , general contractor. Are they legally allowed to force me to hire a contractor.


Asked on 2/08/13, 8:47 am

1 Answer from Attorneys
Michael Lindner Lindner Law LLC

In general, there is nothing that prevents you from doing the repair work yourself. However, the extent that insurance will provide payment to you for that work can vary based on the language in the policy, the efforts you made to put your insurance company on notice of the claim, and whether you had an adjuster evaluate the damage, approve the work, etc.. To the extent that you are a licensed NJ general contractor, that helps in the argument to allow you to do the repair. Getting paid for the work is slightly more difficult when you do it yourself.

I would need to see the language that your mortgage company is relying upon to deny your right to fix your own house, because that can change the general rule.

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Answered on 2/08/13, 12:03 pm


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