Homeowners Claim after Bankruptcy on a Ride thru Mortgage

[howtoplan]

Ok so we filed Chapter 7 in 2009. We had a first and 2nd mortgages. Our house value is under water. We have continued paying our first and haven't made any payments on the 2nd in 5 years. We don't even hear from them any longer. Of course we realize they still hold interest in the property.

Anyways we recently had a huge insurance claim and will require endorsements on the insurance proceeds to restore the property. Does anyone have any experience in this area? It sounds like a pain and we wonder if the 2nd mortgage has any interest to play nice anyways. Especially since they haven't been paid a dime in 5 years.

[LadyInTheRed]

I don't have any experience with this. But, with auto insurance claims, the insurance company will pay the repair shop without involving the lienholder. I wonder if the insurance company would pay your contractor directly.

[howtoplan]

Unfortunately I know this is not the case. The claim will be a monitored claim with multiple inspections, similar to a construction draw process. The claim is in excess of 70k