What can I do if my mortgage company will not releasethe last payment of my insurance money?

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What can I do if my mortgage company will not releasethe last payment of my insurance money?

My mortgage company keeps sending me more paperwork to fill out and return instead of releasing the rest of my insurance money. Also, the checks that they did send me my bank would not except and I had to open an account with the bank that holds my mortgage in order to deposit it.

Asked on July 28, 2011 Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If there are no valid reasons for the mortgagor to withhold the money, then they need to release it; unfortunately, if they don't do so voluntarily, your recourse is to sue them, if necessary for its release (if you have to sue, you can also claim for miscellaneous costs you've incurred, such as if there was a fee to open the new account). Of course, suing itself costs money, so it's not something done lightly. You may wish to begin by letting the bank know--if, again, you're confident you've complied with all requirements, there are no open issues, etc.--that if they do not return the money, you will take all appropriate action, up to and including legal action, to obtain it. The letter should be sent some way you can prove delivery and should be very professional and respectful in tone--but let them know they can't hold onto your money forever.


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