How to Handle a Claim Settlement Check with the Mortgage Company’s Name on it.

1. Call your mortgage company and ask for the “Loss Draft Department.” All mortgage company’s have a department specifically for dealing with insurance claim checks. Here is a directory of Mortgage Company Loss Draft Departments.

2. Please make sure you have your loan number available and the last 4 digits of your social security number.

3. Once you have the loss draft department on the phone, make sure you have their direct line and also jot down the name of the person you are speaking with.

4. They will ask you how much the check is for. Tell them. Generally, if the check is under a certain amount, like $15,000, they will simply endorse the check and mail it back to you. Once the check amount crosses their threshold, they will probably want to supervise the work to your property. They want to make sure the work gets done on your house and you don’t use the money for soething unrelated.

5. Get their overnight address. You don’t necessarily have to send the check to them overnight, but you can send the check to them via priority mail or FedEx, and they check this mailbox more often. ALWAYS SEND VIA CERTIFIED MAIL OR FEDEX WITH A TRACKING NUMBER. They DO tend to lose checks and then you will have to go through the process of getting the old check stopped, and a new check reissued by the insurance company. I have seen this take months.

6. Find out exactly what needs to be in the enveope before you mail the check to them. Sometimes they want the adjuster’s estimate or worksheet. You will have to obtain this from your insurance company or from your public adjuster. Sometimes they want a signed contract with a contractor.

7. Ask them if they want the check endorsed before mailing it and ask them if there is a reference number and if so, place it on the check and all paperwork that you mail to them.

8. Ask them how long the turn around time is. Remember, if the check is under a certain amount, they will endorse it and mail it right back to you. If the check is over the limit (each mortgage company has their own limit) then they will send you back only some of the money and will supervise the construction by sending an inspector to your property. Each time the inspector sees the work, he will approve a little more money. This way they control the repairs and make sure you do it.

HINT. If you have had a recent refinance or your mortgage company has changed names or was bought out, before you mail the check, you will need to make sure the settlement check was issued correctly by the insurance company. Banks change names all the time….especially mortgage company names.