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MShore, Attorney
Category: Legal
Satisfied Customers: 25285
Experience:  Negotiate, Draft, and Review many complex commercial agreements each year.
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I have a case where a I did a wrap around mortgage in the form

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I have a case where a I did a wrap around mortgage in the form of a promissory note on a single family home. This home was hit by hurricane IKE. The insurance premium was by 50/50 and the insurance was in my name. The issue is on how to use the insurance proceeds. The buyer wants to do ALL the work himself and I want professional to do the work, like professional plumbers, electricians, etc ... I feel the buyer wants to do the work himself so that he can do it as cheaply as possible and pocket the rest of the money. He as sued me and has stopped paying his "mortgage/rent" to me for about 8 months now and counting. I could no longer afford to pay two mortgages, this one and my house. Therefore, I used the money that was advanced to me by the mortgage company to pay the debt. It was either that or let the house go into foreclosure. Is what I did legal?
The money that was advanced to you by the mortgage company was advanced for what purpose?
Customer: replied 8 years ago.
To fix up the house I presume, but there was nothing in writing indicating as such.
If there were no written stipulations whereby you agreed to use the money solely for the stated purpose then you have nothing to worry about.
Customer: replied 8 years ago.
What about from the buyer. We are currently in the middle of a lawsuit about this money? Does the buyer/plaintiff have any legal recourse if I use all or part of the insurance proceeds to pay down the debt?
No because he was a not a party to your agreement with the lender.
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