All parties to the check will have to sign, and typically the homeowner will need to be present, armed with a copy of the insurance adjustor's report or worksheet. If your mortgage company is a bank which has branch locations, you may be able to take it to the bank. Typically and depending on the mortgage company, if the investor limit (the amount in which the investors in your loan determines that it will endorse and release the check).is below 10-15000 and the loan is current, the mortgage company will just sign and release the check. My loan is current and the check is for only a few thousand dollars. Depending on the amount of loss you have sustained, there are several scenarios that come into play. Because your check will be made payable to all parties taking out the mortgage, as well as the mortgage company, the mortgage company will need to sign the check. Your insurance policy includes a loss payee, or mortgagee clause, which states how insurance proceeds which affect the dwelling and the lender's interest in the property will be paid. They of course will insist you repair your property rather than spend the money on other purposes. You also agreed to report property losses to your insurance and mortgage company, and gave your lender the right to determine how, when and even if your check is released so you can repair your property. If you don't abide, the mortgage company will purchase and charge you for lender-placed insurance. When you signed the paperwork for your mortgage, there was undoubtedly a clause which required property insurance be kept in force on the property at all times, at the amounts demanded by the lender. What do you mean they can hold my check? Why is it my mortgage company's business? If you have a mortgage, your mortgage servicing company as well as the entities that invest in your loan (such as Fannie Mae and Freddie Mac) all have a say in how, when, and if they will agree to either place their endorsement on your check, or hold your check and disburse funds to you and your contractor to begin the needed repair work. Getting that insurance check (also called a Loss Draft) is often only half the battle. A loss to your property, to say the least, is a complicated, time consuming process.
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