Well first off he seems like a real dick for not talking to you and doing that right after your house burnt but the ones I've seen mean that you can't sell whatever the lein is on. I don't know if they will hold your reimbursment check because of it or not. Sorry I can't be of more help.

 

My moms house burnt down this past november, it was a total loss. Shes also living in an insurance paid rent house for the time being. She still owes roughly $64k on the house that burnt, after talking to her, my understanding of it is the insurance goes through and asses everything. After they come up with the final amount, including the contents inside, they take that $ and pay off any loans or leins that are on the house and then whatever is left afterwards you get a check for.

Usually for someone to place a lein, they have to go to court, and you should have been notified about the hearing so you could deffend yourself. I would get ahold of your courthouse and ask them for info on this. Good luck, and sorry for your loss

 

my understanding of it is the insurance goes through and asses everything. After they come up with the final amount, including the contents inside, they take that $ and pay off any loans or leins that are on the house and then whatever is left afterwards you get a check for.

Absolutely not true. The insurance company owes to repair damage to a risk (insured property) not to pay off the lender and all leinholders.

The insurance company WILL make the check for damages out to the homeowner and the lein holders. That doesnt mean that the leinholder gets to pocket the cash and run. Loss payments are meant to cover the repairs to insured property not to pad the bank accounts of those that incurred the loss or had financial interests in the insured property.

To safegaurd against the policyholder using insurance payments on expenses other than covered damage repairs the insurance company adjuster will withold an amount equal to the depreciation of the item/s being paid for. In essence, the initial payment is for the acv, or actual cash value of the damaged item/s. After the repairs have been made you must submit proof of repair in the form of reciepts for money spent in order to file a claim for reimbursment of the depreciation witheld.

 

why did he put a lien on your house instead of putting a claim in with either of the homeowners insurance company's??
something does not sound rite here.
as said before, check to see what it is for and how it was done. you may need a lawyer for this one.

 

Have YOU put him in touch with your insurance company so he could get the damage to his house repaired.

 

I have already started assessing everything with my ins company and been issued my checks. I am not rebuilding so the cut me a check for the house, which after depreciation was added left my roughly $6400 out of pocket to pay. I also have a check for contents, my belongings, coming which will used to pay off the rest of the loan and whatever else i need. I gave the guy my homeowner ins info and everything but i knew it wouldn't cover his house because it was not my fault. Thats what i was told by my ins company.

 

Well then yes. If you are not rebuilding then you dont get to recoup the depreciation and you have to settle with the leinholders.

Just a tip for you. you may be able to debate the depreciation percentages used to get a higher payment. Only you know the condition your house was in before the fire. How does the adjuster know that 20% on paint of 30% on carpet is a good fair number?

You might check into hiring a public adjuster to see if you can get some more cahs out of the deal.

 

ok got you! i understand little more now, thank you. I know i can recoup the depreciation lose if i buy a relatively same house for the covered amount, i can get it after closing.

 

If that is the case then thats pretty cool!