With regard to residential real property, Texas law requires the mortgage company to provide you with notice of each requirement that you must comply with in order to obtain the proceeds of the check within 10 days of receiving payment. §557.002(a) TEX. INS. CODE. After you have completed the required repairs, you need to send the mortgage company notice of the completion of the repairs and a request for payment. Within 10 days of receiving notice and a request for payment, the mortgage company must release the proceeds to you or provide notice to you that specifically explains the reason for its refusal to release the proceeds to you and each requirement with which you need to comply in order for the mortgage company to release the proceeds to you. §557.003 TEX. INS. CODE. If the mortgage company fails to comply with either of these statutes, it must pay you 10 percent interest on the proceeds for the period of noncompliance until paid.

Frequently Asked Questions

 


Q: I suffered a loss to my home. My insurance carrier issued a check jointly payable to me and my mortgage company. I gave the check to the mortgage company. I completed the repairs, but the mortgage company has not released the insurance company's payment. How do I force the mortgage company to pay?

A:  With regard to residential real property, Texas law requires the mortgage company to provide you with notice of each requirement that you must comply with in order to obtain the proceeds of the check within 10 days of receiving payment. §557.002(a) TEX. INS. CODE. After you have completed the required repairs, you need to send the mortgage company notice of the completion of the repairs and a request for payment. Within 10 days of receiving notice and a request for payment, the mortgage company must release the proceeds to you or provide notice to you that specifically explains the reason for its refusal to release the proceeds to you and each requirement with which you need to comply in order for the mortgage company to release the proceeds to you. §557.003 TEX. INS. CODE. If the mortgage company fails to comply with either of these statutes, it must pay you 10 percent interest on the proceeds for the period of noncompliance until paid.



Durrett Law Firm is located in Houston, Texas, and serves clients in the following surrounding TX areas:

Counties: Harris County, Ft. Bend County, Brazoria County, Galveston County, and Jefferson County.
Cities:  Houston, Pasadena, Beaumont, Galveston, Bellaire, West University, Friendswood, Humble, Katy, Pearland, Tomball, Spring, South Houston, Webster, Waller, Missouri City, Bryan, Willis, Conroe, Baytown, and Stafford.

Bookmark and Share

Contact Us

Name:

Phone:

Email:

Tell us more:



2401 Fountainview Dr
Suite 450
Houston, TX 77057
Phone: 713-623-6881

Get Directions

Our Address


2401 Fountainview Dr
Suite 450
Houston, TX 77057
Phone: 713-623-6881

FAQs

Insurance Law

Read All

©2010 Durrett Law Firm, All Rights Reserved, Reproduced with Permission
Attorney website design by Foster Web Marketing, the best attorney website design solution on the Web offering search engine optimization for attorneys, lawyer website design, video for attorneys, and more.
Get SEO Tips from The Attorney Internet Marketing Blog

Served By: A