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Insurance fraud?

Asked about 3 years ago - Houston, TX

The mortgage company bought insurance on this house. After IKE, we called the company and they sent an adjuster. They sent a check for over $14000, but the policy number the name did match the declaration page. The former owner is dead and he willed the house (and mortgage) to us.We sent the checks to their lawyer.
He said that no body could cash those checks. Today he called and said that he was going to ask the underwriters to make the check out to WAMU and said that they would keep the money toward the mortgage.
We have been trying to buy this house for over two years, but it was thrown into probate and no one will sign off on it even though the other three sons don't live around here.
Well, anyway, can these people use insurance money meant for disaster relief to use it for whatever they want? I thought that was fraud.

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Attorney answers (1)

Lu Ann Trevino

Reputation Level 17

Answered about 3 years ago. Debt / Lending Agreements Lawyer in Houston, TX.

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You are in a very difficult position. The force-placed insurance was purchased by the mortgage company to protect its interest in the property. You do not actually have a present interest in the house because it currectly "belongs" to the estate and the mortgage company.

The executor of the estate needs to resolve the ownership issues soon. If the estate has been in probate for 2 years, you can demand that assets be distributed and force settlement of the mortgage issue.

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