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(CNN)   Worried that hurricane victims might not know how to best spend a sudden windfall of insurance money, banks have decided to just "hold on" to about $210 million in Sandy payments. You know, for a rainy day   (cnn.com) divider line 18
    More: Asinine, Superstorm Sandy, Andrew Cuomo  
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11947 clicks; posted to Main » on 13 Feb 2013 at 10:29 AM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-02-13 10:48:14 AM
3 votes:

Girion47: GAT_00: ZAZ: An underwater house leads to an underwater mortgage. In a no recourse state I take the money and run. Move out, stop payments. The bank forecloses on a wreck. I use the money to build a new house. So I understand why the banks might want to keep track.

And the bank has no right to decide it knows best and withhold money, none.

Not to mention the banks might not even hold the mortgage on the house that they're witholding the money from.


Bad reporting is bad reporting.

What the article means is that the checks from the insurance companies are payable to the order of "John Homeowner and The Lending Bank that Holds JH's Mortgage (in other words, the Mortgagee)."  In order for such a check to be deposited, it must be indorsed by BOTH JH and The Mortgagee.  It is not the bank where JH has a deposit account that's causing the holdup; it's the lack of indorsement by the Mortgagee.

The reason the insurance companies draw the checks payable to the order of both JH and the Mortgagee is because the Mortgage requires it, as does the insurance contract.  After all, the house is Mortgagee's collateral and there is an obligation to repair the house (rather than take the money and move to the Bahamas, leaving the lender to foreclose on a rotted-out moldy shell worth zip).
2013-02-13 10:41:05 AM
3 votes:
FTFA: Delays can follow when banks request proof of repairs or servicing required by federal mortgage agencies.

What they meant to say is that delays can follow when they need that money to sit in their bank for a few months so that they can invest it and get a return. Once they get their cut, you can have yours.
2013-02-13 01:16:46 PM
2 votes:
farm4.staticflickr.com
2013-02-13 10:52:42 AM
2 votes:

snocone: It is rather obvious the the Bankers just cannot deal with a Black Man in their White House.


Obama is their biatch. He'll keep his mouth shut and do as he is told like a good little boy.
2013-02-13 04:38:49 PM
1 votes:

CptnSpldng: t endorsed the check as well. Right now the cash is really still sitting in the insurance company's bank accounts and it won't move until both the banks and the homeowners have signed off on it.


as an FYI for you... the banks *require* you to endorse the check after the insurance company sends it to you if you want them to further process it. -So, you really don't have an option with that sort of thing considering it's a 3 party check.
2013-02-13 04:36:38 PM
1 votes:
As someone who has now waited over a *year* for his insurance payments because of a crappy bank such as these.... I'm getting a kick.

/but unfortunately, no insurance money as of yet.
//there should be major penalties for this kind of crap.
ZAZ [TotalFark]
2013-02-13 11:30:56 AM
1 votes:
Before they did this, they ran a check to make sure I was current on my payments, otherwise they said they would confiscate the funds to go towards settling my arrears payments.

If the check is made out to both you and the bank, they can't have the money either until you endorse the check.

I reread the article and it seems that the banks are not holding onto money. They are preventing insurance company checks from being cashed. Insurance companies have the money until the check is cashed.

You file a claim. Insurance company sends a check made out to you and Bank of Evil. Bank of Evil requires a notarized affidavit from your parents, God and Ayn Rand before it will endorse the check. The bank may be evil but it is not rich, because it can't cash the check without your consent.
2013-02-13 11:20:53 AM
1 votes:

Girion47: GAT_00: ZAZ: An underwater house leads to an underwater mortgage. In a no recourse state I take the money and run. Move out, stop payments. The bank forecloses on a wreck. I use the money to build a new house. So I understand why the banks might want to keep track.

And the bank has no right to decide it knows best and withhold money, none.

Not to mention the banks might not even hold the mortgage on the house that they're witholding the money from.


Do you know how I know that you haven't a clue?

"Banks" are not withholding payments.  If there is a mortgage, the insurance check is made out to A) the homeowner, and B) the institution holding the mortgage.  The mortgage-holder may have certain stipulations on how and when the money needed to make repairs is released, but it is never the case that a bank that is not the mortgage-holder is withholding anything.
2013-02-13 11:09:17 AM
1 votes:
"After insurance companies have sent homeowners checks to pay for repairs, the money should not be sitting with the bank because of red tape."

It's NOT sitting there because of "red tape".  It's sitting there because the daily interest on $200 million is pretty sweet.
2013-02-13 11:02:55 AM
1 votes:

ajgeek: So you're requiring them to repair the house before you pay for house repairs.


Reminds me of this...

10 We can't hire you because you have no experience.
20 How do I get experience?
30 Get hired.
40 How do I get hired?
50 Have experience.
60 goto 20
2013-02-13 10:55:12 AM
1 votes:

DROxINxTHExWIND: FTFA: Delays can follow when banks request proof of repairs or servicing required by federal mortgage agencies.

What they meant to say is that delays can follow when they need that money to sit in their bank for a few months so that they can invest it and get a return. Once they get their cut, you can have yours.


My thoughts exactly.
2013-02-13 10:47:32 AM
1 votes:

ZAZ: An underwater house leads to an underwater mortgage. In a no recourse state I take the money and run. Move out, stop payments. The bank forecloses on a wreck. I use the money to build a new house. So I understand why the banks might want to keep track.


There are states where it is legal to do this?
2013-02-13 10:44:52 AM
1 votes:
FTFA "use maximum discretion and effort to speed the release of funds."

Double speak
2013-02-13 10:33:47 AM
1 votes:

GAT_00: ZAZ: An underwater house leads to an underwater mortgage. In a no recourse state I take the money and run. Move out, stop payments. The bank forecloses on a wreck. I use the money to build a new house. So I understand why the banks might want to keep track.

And the bank has no right to decide it knows best and withhold money, none.


Not to mention the banks might not even hold the mortgage on the house that they're witholding the money from.
2013-02-13 10:17:34 AM
1 votes:

ZAZ: An underwater house leads to an underwater mortgage. In a no recourse state I take the money and run. Move out, stop payments. The bank forecloses on a wreck. I use the money to build a new house. So I understand why the banks might want to keep track.


And the bank has no right to decide it knows best and withhold money, none.
ZAZ [TotalFark]
2013-02-13 09:01:30 AM
1 votes:
An underwater house leads to an underwater mortgage. In a no recourse state I take the money and run. Move out, stop payments. The bank forecloses on a wreck. I use the money to build a new house. So I understand why the banks might want to keep track.
2013-02-13 08:58:11 AM
1 votes:
Cuomo also wants $400M to buy out people in the most vulnerable areas. It would be nice to know that he cross-checked the list of people waiting for their money with the list of people up for buyouts - because it would be very Albany to demand money to rebuild a storm-trashed house, then demand money to demolish it once the repairs were done.
2013-02-13 08:53:30 AM
1 votes:
FTFA: Delays can follow when banks request proof of repairs or servicing required by federal mortgage agencies. But many residents have complained that they haven't received the funds they need to start the repairs.

So you're requiring them to repair the house before you pay for house repairs. It must be nice to live in a world where money is no object.

/oh wait... it is everything to bankers
 
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