Insurance check issued on a sold foreclosed property in both the prior mortgage company and prior owner’s name

UPDATED: Oct 2, 2022

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Insurance check issued on a sold foreclosed property in both the prior mortgage company and prior owner’s name

I am the previous owner of a foreclosed property that has been sold at auction for more than the mortgage balance. Prior to foreclosure, there was an insurance claim for fire damage. A check has been issued for the damage but in the names of myself and the mortgage holder. As stated the house has been sold at auction fetching a price greater than the mortgage balance, plus the mortgage was a TX home equity loan mortgage so there can be no deficiency from auction sales. Being the owner when the claim occurred and the mortgage company having no outstanding financial ties or claims, how can I get the claims check endorsed and deposited?

Asked on October 31, 2019 under Real Estate Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

There is easy guaranteed way to do this. As a first resort, ask the lender to have someone endorse the check to you, since they have already been made whole. If they refuse to do so, however, you would have to sue then and seek a court order compelling them to endorse the check to you and in the case prove to the court (which based on what you write, should be straighforward) that the lender has already received everything to which they are entitled.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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