Legal Question in Real Estate Law in Texas

Owner financed property. We pay into escrow for tax and ins. Owner took check for ins claim and never repaired our home. Check was in all our names, but we never even knew he had received it. Now he has the money and our home is needing repair. The bank never should have accepted the check. What legal recourse if any do we have? We are named on the ins policy.


Asked on 6/26/11, 10:26 am

1 Answer from Attorneys
Joseph A. McDermott, III Attorney at Law

It depends on what the deed of trust says; many provide that the lender has the right to apply the insurance proceeds to the loan or use them for repairs. If he endorsed it without your signature that's a big problem.

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Answered on 6/26/11, 3:54 pm


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