Many times, the mortgage company name will be on the check that is sent to the insured. This adds a whole new level of frustration to the claim that will delay the claim for all parties. There is currently no mechanism that is in place to rectify any unethical behavior by the mortgage company either on National or State levels. The mortgage company can take the check and sit on it for as long as they desire and require all of the “guidelines” that they require before releasing funds to perform the repairs to the property. There are very few things that can be done to remove this obstacle to indemnity. Even the attorney has very little sway to move the payment along and some mortgage companies will delay payment as long as possible. Why is that? The main reason that they do this is the same reason the insurance companies do it: To delay the time frame that they have to pay the homeowner. Consider, if a mortgage company can deposit your $50,000 insurance money in their holdings for 2 months, then they can make a considerable amount of interest on it before they release it back to you. What did they have to expend to get this money? Advertising? Litigation? Manpower? No, they did absolutely nothing for this money and they will make great interest on it. Now consider if they do this across hundreds or thousands of accounts. They can make considerable amounts of money on your money without doing anything more than delaying you taking it away from them. What is the answer?
