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fixing fence and roof with insurance and mortgage lender

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  • Jun 4th, 2019 1:50 pm
[OP]
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May 9, 2006
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Mississauga

fixing fence and roof with insurance and mortgage lender

I was going to fix fence and roof with insurance, they quoted 30k+ I told them I would take the money and get it done with my contractors. They sent the cheque but with my mortgage lender name on it as well. How does that work? will lender give me full money if I get the all job done but with only 20K expense?

anyone went through this before?
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djjungly wrote:
May 31st, 2019 4:16 pm
I was going to fix fence and roof with insurance, they quoted 30k+ I told them I would take the money and get it done with my contractors. They sent the cheque but with my mortgage lender name on it as well. How does that work? will lender give me full money if I get the all job done but with only 20K expense?

anyone went through this before?
You don’t own your house, that bank does. This is done so that you don’t just pocket the money yourself and not fix the issue. This would have an effect on the fair market value of the property if not repaired.

The remainder of the payout (if any) would go to the bank if I’m not mistaken
Everything has been said before, but since nobody listens we have to keep going back and beginning all over again. - Andre Gide
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Deposit the cheque in your account through the bank machine, good chance they don't pick up on it.
[OP]
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Mississauga
Red_Army wrote:
May 31st, 2019 4:19 pm
You don’t own your house, that bank does. This is done so that you don’t just pocket the money yourself and not fix the issue. This would have an effect on the fair market value of the property if not repaired.

The remainder of the payout (if any) would go to the bank if I’m not mistaken
can someone confirm? also if it goes to bank does that mean it goes toward my mortgage?
[OP]
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Zamboni wrote:
May 31st, 2019 4:58 pm
Deposit the cheque in your account through the bank machine, good chance they don't pick up on it.
The insurance company has already informed them, they are aware that I got the cheque.
[OP]
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djjungly wrote:
May 31st, 2019 7:23 pm
The insurance company has already informed them, they are aware that I got the cheque. what if I deposit and they don't accept it?
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djjungly wrote:
May 31st, 2019 7:22 pm
can someone confirm? also if it goes to bank does that mean it goes toward my mortgage?
If you have a mortgage on your house, the cheque for repairs will generally be made out to both you and the mortgage lender. As a condition of granting a mortgage, lenders usually require that they are named in the homeowners policy and that they are a party to any insurance payments related to the structure. Similarly, if you live in a coop or condominium, your management company may have required that the building's financial entity be named as a co-insured.
This is so the lender (and/or, in the case of a coop or condo, the overall building), who has a financial interest in your property, can ensure that the necessary repairs are made.
When a financial backer is a co-insured, they will have to endorse the claims payment check before you can cash it.
Depending on the circumstances, lenders may also put the money in an escrow account and pay for the repairs as the work is completed. Show the mortgage lender your contractor's bid and let the lender know how much the contractor wants upfront to start the job. Your mortgage company may want to inspect the finished job before releasing the funds for payment to the contractor.
Everything has been said before, but since nobody listens we have to keep going back and beginning all over again. - Andre Gide
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djjungly wrote:
May 31st, 2019 7:22 pm
can someone confirm? also if it goes to bank does that mean it goes toward my mortgage?
I doubt it. It will probably go back to the insurance company in your case
Everything has been said before, but since nobody listens we have to keep going back and beginning all over again. - Andre Gide
[OP]
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May 9, 2006
710 posts
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Mississauga
Red_Army wrote:
May 31st, 2019 8:07 pm
If you have a mortgage on your house, the cheque for repairs will generally be made out to both you and the mortgage lender. As a condition of granting a mortgage, lenders usually require that they are named in the homeowners policy and that they are a party to any insurance payments related to the structure. Similarly, if you live in a coop or condominium, your management company may have required that the building's financial entity be named as a co-insured.
This is so the lender (and/or, in the case of a coop or condo, the overall building), who has a financial interest in your property, can ensure that the necessary repairs are made.
When a financial backer is a co-insured, they will have to endorse the claims payment check before you can cash it.
Depending on the circumstances, lenders may also put the money in an escrow account and pay for the repairs as the work is completed. Show the mortgage lender your contractor's bid and let the lender know how much the contractor wants upfront to start the job. Your mortgage company may want to inspect the finished job before releasing the funds for payment to the contractor.
thanks I should have just gone ahead with insurance company fixing it, I thought I could get more done with the quote they provided which would be better for the house.
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OP, you are correct. You should have just had it done by the insurance company. This happens on many occasions and people should be asking about who the check will be made out to before making a decision to do it yourself.
If the insurance company gets it done, they basically insure it also.
[OP]
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Mississauga
luckystrike1 wrote:
Jun 3rd, 2019 1:49 pm
OP, you are correct. You should have just had it done by the insurance company. This happens on many occasions and people should be asking about who the check will be made out to before making a decision to do it yourself.
If the insurance company gets it done, they basically insure it also.
thanks, I guess I will have to take a bullet and give up saved money for the insurance company to lender:)

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