NOTE: This is a sample letter that must be customized to the facts of your individual situation. All bracketed and underlined portions must be completed or revised before sending. Use this letter to get your mortgage company to release insurance proceeds to you or your contractor. For more information, see: Getting Your Insurance Company to Release Your Insurance Proceeds
[DATE] [NAME SUPERVISOR; LOSS DEPARTMENT] [NAME AND ADDRESS OF MORTGAGE COMPANY]
Re: Claim Number _____________
Loan Number ______________
Date of Loss: _____________
Name of Insured: _______________________
Address of Insured Property: _________________________________________
Dear [MORTGAGE COMPANY SUPERVISOR; LOSS DEPARTMENT],
I am writing to request that insurance funds be immediately released to [YOUR NAME] or [NAME OF CONTRACTOR] so that I can begin the difficult process of rebuilding my home. On [INSERT DATE OF LOSS] I experienced a traumatic [FIRE, FLOOD, ETC.] at my home. I timely filed a claim with my insurance company. They issued a check in the amount of [INSERT AMOUNT OF INSURANCE PROCEEDS] which I promptly sent to [NAME OF MORTGAGE COMPANY] for endorsement by an additional named insured.
To date, [NAME OF MORTGAGE COMPANY] has not completed the paperwork to release insurance benefits to [ME] or [NAME OF CONTRACTOR]. Your collateral/my home remains unrepaired. It is in both my and [NAME OF MORTGAGE COMPANY’S] interest to have my home repaired without further delay.
The terms of [INSERT NAME OF MORTGAGE COMPANY’s] loan require me to repair my home in the event it is damaged. By [INSERT NAME OF MORTGAGE COMPANY] holding up payment of my insurance proceeds, your company is preventing me from complying with those terms.
By holding up my insurance proceeds, you are essentially forcing me to involuntarily deposit funds with you that should be going toward restoring the asset that is my home and your collateral. Please send to me the account number that the funds were deposited into, the terms of that account, and an accounting of how the funds are being used. It would be improper for you either to put my money at risk or to make a profit from my money.*
Please immediately provide the name and direct telephone number and email of a person with authority to work with me on [INSERT NAME OF MORTGAGE COMPANY’S] behalf. Thank you for your time and prompt attention to this request.
Sincerely,[YOUR NAME AND MAILING ADDRESS]
*If you live in California, consider adding: “Please be advised that [CALIFORNIA] law entitles me to interest on insurance proceeds that are wrongfully withheld by a mortgage company.”