In the wake of Hurricane Ida, we’ve had several clients receive insurance checks that weren’t accurate. In many of those cases, our clients wondered why a bank or lending company was listed on their check when they no longer had a mortgage.
This type of situation typically occurs when the mortgage on a property is paid off but not canceled from the public records. The mortgage company is supposed to send a cancellation of mortgage once it is paid off. Sometimes they’ll record the cancellation in public records, while other times, they’ll send it directly to the homeowner. If the latter occurred, the public records would still reflect an active mortgage when the insurance company ran their records check before issuing payment. To resolve this type of situation, you would need to reach out to your mortgage company and ask them to send you a cancellation so that it can be recorded in the public records.
If you are experiencing similar issues or need assistance, don’t hesitate to contact us at State Title.