After losing my job, my home fell into foreclosure. We filed for Chapter 13 to save the house, and are on a 100% repayment plan. Last month, a bad hail storm came through. The insurance company came out, and due to the damage of both the roof and siding, they cut a check then and there for the damages. The check is made out to me, my wife, and the mortgage company. I haven't been able to get a hold of my lawyer yet. I would really like to get the damages fixed. Is the trustee or the mortgage company going to seize that money? Am I out of luck?
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We had a similiar situation. Our attorney contacted our trustee who said no problem get it fixed!
The bank though is another story... the bank wouldn't endorse the check unless "We bring our payments current." I politely reminded them that attempting to collect anything in addition to payments they were recieving from the trustee (we've filed and had our 341 with no objections, but not confirmed yet so they haven't gotten anything its still in trustee's escrow account) after they have been made aware of the 13 was not permitted. Now we're doing a modified claim process where we send them the check with our endorsement, they cash it and then they release it back to us in pieces to us to pay for the repairs and when 90% done they come out make sure repairs are done then release the balance. It wasn't bad just another hassle.
Best of luck to you!
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