mason12 said:
Can someone explain why an insurance check would need to be sign by the mortgage company/bank? We filed a claim with our insurance company after last years hail storms and never went through the mortgage company.
They own your house and you are buying it from them with your monthly checks
Q: Why can't I just deposit and use my insurance checks? Why does it have to go through my mortgage company first when I paid the insurance premiums?When you borrowed money to buy your home, you agreed that one way the mortgage company would be protected would be that the mortgage company would be co-insured, right along with you, for any harm to your "improvements."
Your mortgage documents are set up to protect the mortgage company if you take your insurance rebuild money and disappear. In other words, your property and the house are the collateral for the loan; so if you cashed the insurance checks but did not rebuild, then the mortgage company would have a problem. The loan and insurance documents set up a system to prevent you from doing that.
Unless and until you get your mortgage company to agree to something different (in writing), every Coverage A check you get, and maybe some of your other coverage checks, will say something like: "Pay to the order of Jane Doe and Jane Doe's Mortgage Company."
You will be required to endorse/sign the check first, and your mortgage company will deposit the money into its own account, and then release the money to you later, once you have started the process of rebuilding your home.