When the unthinkable happens, it’s often hard to determine which pieces to pick up first. Damage to your home after a natural disaster, weather event, or fire, raises anxiety levels and you just want everything to be back to normal. That’s sometimes easier said than done, so it’s helpful to know what to expect before you need to worry about it.
When you buy a home, your mortgage company becomes a party to your insurance. You are, in essence, guaranteeing that your mortgage is protected as well as your home. When checks are written out by your insurance company, they list both you and your mortgage company as the payees. This means you need to get them to endorse the check before it can be cashed or put into an account. This is the money you’ll need when paying contractors completing the work on your home. So how do you get the mortgage company to respond and comply? Here are a few steps to consider.
Contact The Mortgage Company
As a homeowner, when you’re in the position to receive an important signature from the mortgage company, the onus is on you to ensure this process is completed. That means you can’t wait until the mortgage company decides to respond to you. Experts suggest you contact your representatives every day until the matter is resolved.
The truth is, this can be a long and difficult process, but if you’re unable to do so the work will go unfinished or you will need to make the full payment out of pocket.
Get the Check Endorsed
When a settlement is made, the check your insurance company sends you will be made out to both you, as the homeowner, and your mortgage company as the co-insured. As with any check made out to more than one person, it requires both parties to endorse the check before it can be cashed.
You will need to submit the check, along with a packet filled out from the contractor, so the mortgage company will sign it and send it back. This is the stage where you will need to reach out to the company on a regular basis until you have the check in hand.
To ensure you receive the endorsed check in the timeframe necessary, follow up with your mortgage company regularly. Failing to do so may cause you to pay out of pocket for the work completed on your home. The truth is, even if you do everything right to get the check endorsed, you may have to repeatedly follow up. This is especially true if your mortgage is with one of the bigger companies.
When following up, keep records of every call you made and who you spoke to. This will help you with each additional call you need to make to the company. Escalate as necessary. If you need additional tools, a letter such as this one may be helpful.
While it can be more than a hassle to ensure your mortgage company endorses the check, having the money in a timely fashion will benefit both you and your contractor a great deal. Most contractors have wording indicated in their contract allowing them to collect interest if a payment takes more than 30 days. This is standard within the industry and understandable based on the scope of work being completed.
By following up regularly with your mortgage company, you can ensure your contractors are paid on time and that you don’t have to pay out of pocket or incur additional fees.