We received a insurance check from our insurance adjuster to get our roof done. It was damaged during an ice storm because a tree fell on our house. Our first time doing a insurance claim.

We asked questions on what steps to take after receiving the checks in the mail. Insurance adjuster told us to find a contractor and go from there. We did.

Signed both checks and deposited them into my account. One checked cleared, but the second check didn't clear yet because they needed a signature from the mortgage company. It's for 8,000.

I called our mortgage company to explain we didn't pay any attention to their name on the check and already cashed the checks. But for the second check, the bank put a hold on it until the mortgage company returns the checks back signed.

I talked to someone in the claims department, she gave me instructions on what steps to take. I sent both checks, and sent the insurance report. She said they would sign the checks and send them back...That was a lie.They straight up mislead me. They kept the 8,000 check and sent the other check back signed.

They wanted to put the 8,000 check in an escrow account until the roof is done, but we already told them that the checks was already deposited and was just waiting on their signature to take off hold. They went ahead tried to cash the check in their bank account and couldn't. It came back as a duplicate.

My bank and the insurance adjuster tried talking to the mortgage supervisor telling him to either sign the check and return it or sign the check endorsement release form. He still refused. He gave my bank and the insurance adjuster a very hard time. I felt bad they had to deal with a heartless person like him.

Since the check is cleared in my account, the bank or the insurance adjuster can not cancel that out. The mortgage company wants a new check. They told him no, we can not issue a new check. The check is cleared.

So our roof is done and we have nothing to pay them with because the mortgage company is being very difficult. The mortgage company said pay out of your pocket because I am not signing the release forms.

I am pregnant and stressed out. We just wanted to get the leaking roof done before baby came, and get rid of the molded ceiling from all the rain and melted snow. Mind you this house is 25 years old and it has all it's original everything since 1998.

What do I do?

  • 1
    Talk to a lawyer. Ask them to send a threatening letter to the mortgage company.
    – RonJohn
    Commented May 5, 2023 at 7:47
  • 6
    I think you are confused about the term "deposited". Clearly this check needing the mortgage company's signature is not deposited. It seems that the mortgage company wants to ensure that the money goes to the needed repair instead of some other expense in order to protect their interest in your property.
    – jwh20
    Commented May 5, 2023 at 9:47

1 Answer 1


First of all the insurance company had to put the your name and the mortgage companies name on the checks. The mortgage company wants to know about the damage, and wants to make sure it gets fixed to protect their investment.

The insurance adjuster should have know this, because this is the way it works whenever there is a claim for damage to an item that is collateral for a loan.

The bank should not have accepted the checks without the two signatures.

The proper thing to do was to talk to the mortgage company to see what their procedure is get the work done and the roof company paid. They may want proof that the work was done. They might accept photos, or they might require a person they pick to look at the property.

I would continue to work with the mortgage company. They are the only ones that can release the funds. You might want to talk to the company that did the repairs. They know that many repairs involve insurance claims and properties with loans, and know how to work with adjusters and mortgage companies.

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