You buy homeowner’s insurance for the peace of mind of knowing that if your home is damaged, you’ll have the money to make the repairs you need. Unfortunately, many homeowners report that in the event of serious damage or destruction to their home, some or all of their insurance money is held by their mortgage lender until the repairs have already been partially or fully completed. Since many contractors will not make repairs until they receive some deposit or payment, homeowners are forced to pay for expensive repairs out of pocket while they wait for the lender to release insurance funds, causing them undue stress and hardship. Mortgage lenders also sometimesunnecessarily send inspectors to check on the work, and they charge homeowners for those inspections.
Finkelstein, Blankinship, Frei-Pearson & Garber, LLP is currently investigating mortgage lenders who engage in these unlawful activities. If you were forced to front your own money to repair your home because your mortgage lender held your insurance check, or your mortgage lender sent inspectors to your home and charged you for it, please contact FBFG to discuss your legal options.