As Miami homeowner’s insurance claims attorneys we often encounter issues with the endorsement of insurance proceeds by a bank. This often occurs when there is a foreclosure occurring or the homeowner is in arrears/late with mortgage payments. Most insurance proceeds checks related to homeowners claims have multiple parties on them. This is usually an issue, unless the property that is insured is owned free and clear. Most bank drafts will include your mortgage company or companies. Things can get really complicated when there is a second mortgage. This will require multiple endorsements, which can become quite a headache.
Many mortgage companies require you to begin work and once these start, then they will send parts of the proceeds piecemeal fashion, until the repairs are completed. Matters can be more difficult if you have a public adjuster involved. This would mean that there is another interested party involved. Therefore, the insurance company has a duty to name the adjuster or adjusting company on the insurance draft as well. Some insurance checks/drafts may have as many as four or five interested parties.
So what happens if you are in foreclosure or in arrears and you are having a problem getting endorsements and thus have no access to proceeds. In many cases, since interested parties cannot agree as to disbursement, then the proceeds remain in the control of the insurance company. Note, the insurance company has no interest in dealing with endorsement and disbursement issues. This is not their arena or role.
To resolve this issue, the insurance company has to release funds to a Court Registry or a third party. This will allow disputing parties to resolve issues among themselves. If the insurance company is not made to release funds, then there is high likelihood that funds will remain in the control of the insurance company. These matter can be resolved easily if all parties are able to come to an agreement. However, parties coming to an agreement early on is quite a rarity in this situation. Often, court intervention is needed to resolve these matters. Fortunately, there are mechanisms that exist to resolve disbursement disputes in an efficient matter. Most often, parties need to figure out what it is that they want and sit down and come to some sort of agreement.
Our Miami-Dade insurance claims attorneys understand how frustrating these situations can be. Having settled a case, or and come to agreement on a loss, and not being able to access funds can be extremely disappointing and hard to deal with. Let our office help you with this situation and help you get your funds.
Our South Florida insurance lawyers can help you get your funds. Our offices can assist in freeing up these funds and begin talks with all interested parties. If you are having this sort of issue, then please call us at 305.764.9907. We are here to help!