A water leak was discovered under the slab of my home and a plumber was called to fix the problem. The plumber, in good faith, repaired the leak on 06/01.
The insurance adjuster came out and looked at the work and our insurance company sent a check/draft for $582.98 to cover the plumbing work, repair to the floor and floor covering. The insurance check/draft was made out to "Paul Holland and Lettye Holland and US Bank NA".
US Bank is the holder of the home mortgage. As in the past, the check/draft was sent to US Bank requesting an endorsement on the check so that the plumber could be paid and the remainder of the floor work could be completed.
The Check/draft was returned unsigned July 14 with a letter stating they needed a signed contract from a licensed and bonded contractor and a MORTGAGORS COMPLEDTE AFFIDAVIT Other. This information was returned to US Bank with the check/draft for endorsement on July 29.
Today a letter dated August 1 with the check/draft unsigned was receive4d from US Bank asking for the same information that was sent to them earlier, and a paragraph saying:
L. Have all parties endorse the check/draft and return to our office with a copy of the contract for repairs and the estimate of damages from the insurance company. Upon receipt, we will disburse all or part of the funds so repairs may begin.
2. If repairs have been completed, return the check/draft to our office with a copy of the contract for repairs or paid receipts for materials, a lien release and affidavit stating repairs are complete. Contact our office so that an inspection can be completed."
The repairs have been done and the plumber is waiting for his money. So far he has been very patient waiting for payment.
I called US Bank to find out why they had not endorsed the check. They stated that payments had been late several times during the past year and they would not sign the check/draft. We would have to sign it and they would issue us a check. I ask if it would be for the full amount of the check/draft. The lady I spoke with checked with the claim specialist, Katherine Krampe. It was relayed to me that it depended how much we would receive. No explanation was offered to why the full amount may not be returned.
US Bank has no right to the money from the insurance company if the loan is current, which is the case. Just because the payments have not been made exactly on time should have no bearing on what the insurance company pays for a claim as long as the work is completed, or will be completed when the money is received.
Since the mortgage is current, the insurance check/draft should be endorsed and released so that the repairs can be completed and the plumber can be paid in a timely manner.
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