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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I filed bankruptcy chapter 7 a year ago and it was discharged

Resolved Question:

I filed bankruptcy chapter 7 a year ago and it was discharged in 5-2011, my second home was foreclosed on recently 4-28-2012 which was dicharged earlier in the BK. A couple of days after the foreclosure/sheriff's sale purchased by Fannie Mae, 5-1-2012 I received a $20000 check from my insurance company for damage from a connecting townhome that had a water leak. The check was made out to me and the bank. Fannie Mae purchased the loan for the full amount owed, meaning it was settled in full. Who gets the insurance money? The home hasn't been repaired and was purchased by Fannie Mae in the unrepaired state. I don't owe Fannie Mae, I don't owe the bank, the debt is settled. Who gets the check?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
We get many questions that are similar to yours. The answer is that since this is your insurance company, the insurance contract is between you and the insurance company, you are the one who had been paying the premium, and since all financial obligations with the lender were discharged in your Bankruptcy, the insurance check belongs to you.

I think this is what you wanted to know. If not, please let me know.
Thank you.
Customer: replied 5 years ago.
If the check is made out to my bank and me, how do I get my bank to sign off or do I try and get the insurance company to reissue? They will claim that the bank was listed on the insurance clause as well????thank you
Expert:  cfortunato replied 5 years ago.

You have the right to change the beneficiaries on your insurance policy. You have to remove the mortgage company as a beneficiary, and then ask the insurance company to issue a new check.

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