1/2/2024 0 Comments Contour mortgage![]() ![]() Lender may make proof of loss if not made promptly by Borrower. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. (I have added paragraph breaks and bolding for clarity.) Many states have different wording, but the intent is the same: This is an excerpt from the Fannie Mae/Freddie Mac form 3048, which is the form used by most banks for mortgages in the state of Washington. Here are some typical mortgage provisions in this regard. If the repairs are not "economically feasible", and you are current with your payments, most American mortgages specify this use of the money. Hand over the insurance company payment for the deck to your lender, and have them apply that amount toward the principal of your mortgage. In other words, you can "restore or repair the property to avoid lessening the Lender's security".Īccording to most American mortgages, if you can make the repairs for less than the insurance settlement, and the lender is happy with the work, you can keep the savings. Use the insurance company's deck-repair payment to fix your deck to be similar in quality to what it was when you took out the mortgage, allowing for normal wear-and-tear since you took out the mortgage. Your mortgage agreement probably gives you three options: We checked with our insurance company and they agreed that we don't have to make the repairs to the deck if we don't want to.Īre we legally obligated to make the repairs to our deck or can we tell our mortgage company to go pound sand? ![]() We don't feel that we should have to make the repairs to the deck because we can take care of it ourselves whenever we decide to do so AND given the fact that the insurance company paid the claim, our mortgage company shouldn't have any say so in how we spend or don't spend the money. Our mortgage company is now getting on us to make the repairs to the deck so that they can close it out and are threatening to force us to return that portion of the money. However, we decided not to repair the deck because the damage was minimal. We made the repairs to the roof and it passed the inspection. Our mortgage company made the insurance company make the check out to both of us and it was paid out over two checks. The damage was in the 5 figure range, but the estimate for the deck was only a couple of thousands dollars. We had some hail damage to our roof and deck after a bad storm and made a claim with our insurance company. ![]()
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