We had a flood at a rental property that caused significant damage and a claim with our homeowners insurance. Unfortunately for us, GMAC went bankrupt and we wound up in the clutches of Green Tree a non-customer oriented or friendly company.
The insurance company cut a check for the water mitigation and remediation contractor that included GMAC as a payee. We notified the insurance company that Green Tree was the new lienholder and promptly contacted Green Tree, or tried to anyway. It took four phone calls/transfers to get to the proper department. First call to customer service, then the loan account rep, next the insurance department and finally the claims department. That%u2019s where the window must have been open because logic flew out of it.
Lienholders are absolutely entitled to be protected when insurance claims are significant but this particular matter flies in the face of common sense. Green Tree imposed a significant delay in paying the mitigation/remediation contractor by insisting that the water mitigation and remediation payout and other documentation go to them as the final signatory. Green Tree would then cut a check to the contractor. Water mitigation and remediation has no impact on the lienholder.
The common sense approach is that the mitigation/remediation phase of the process has literally nothing to do with protecting the lienholder or the insured. It is a process that cleans and prepares the premises for repair. The insurance company knows this and accepted the mitigation/remediation contractor%u2019s bill without question. Not Green Tree though, they insist upon sticking their fingers into the process, insisting upon a copy of the contractor%u2019s estimate and W-9 form, the insurance adjuster%u2019s estimate, pictures of the damage that has already been remediated and the check endorsed by the contractor and us, the insured. A complete waste of time and energy.
The insurance adjuster did not prepare an estimate because the mitigation and remediation team had to act immediately to clear the premises to prevent mold and further damage. That is why the insurance company paid the contractor based on their estimate. This was unbelievable at Green Tree. I sent them an e-mail from the insurance adjuster confirming that he accepted the contractor%u2019s estimate. I asked Green Tree to acknowledge that e-mail and several others and advise if it was acceptable proof that the insurance adjuster did not prepare an estimate. I am still waiting for them to acknowledge any of my e-mails and either accept or deny the insurance adjuster%u2019s statement.
The bottom line is that Green Tree should only be concerned about the quality and extent of the repair work since that is the phase that protects their interests. There is no reason to delay payment to the mitigation/remediation contractor for what will probably wind up to be a month or more.
The good news is that we are selling the house and will be rid of Green Tree before the check for the repair work is cut, effectively taking them out of the picture so they will not have the opportunity to screw up the sale.
If you have a mortgage with Green Tree, refinance ASAP if you can. If you are seeking a mortgage, save yourself a lot of grief and do not even consider Green Tree. If they are so overreaching and unreasonable on issues that do not concern them, you can bet that their mortgage servicing practices are draconian. Don%u2019t take my word for it, read some of the horror stories concerning Green Tree on this site.
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