Mis-applied Check?

MortgageMaster,

My homeowners sent me a check for damages to my home, which I sent to my morgage Bank to endorse and return. This was in Sept. all repairs have been completed, I can not get my morgage company to reimburse me for repairs to my home. I think there is federal regulations ,that a morgage company can only hold your insurance check for a certain lenght of time.Please let me know this ruling from the Federal Government.thanks

Hello,

I am not familiar with the regulation that you are writing about. As far as I know, HOA's are regulated by the state(s) they are located and/or operating in. This is also true of mortgage lenders. Thus, I would contact the appropriate state or federal agency to get the correct answer. Based on your e-mail address and a little "googling" on my part, I think you are in California. It does not sound as though you need help with the HOA, but rather, the lender. Lenders can be regulated by a bevy a different organizations. In California it can be California Department of Corporations, FDIC, California Department of Financial Institutions, California Department of Real Estate, etc.

The first thing I would do is look at your October statement and see if the endorsed check was applied as a payment to your mortgage. If so, ask a supervisor to void the transaction and send you a check (you may need to prove the work has been satisfactorily completed). If not applied to your mortgage, where was the money applied (assuming the check was cashed?: Check with the HOA)? If the check was cashed, you are entitle to know where it was applied. It sounds as though there is more of a lack of communication than something nefarious. If the check was not cashed, you are back in the driver's seat. Good luck!

MortgageMaster