Success! Finally! Update to our horror story after house burned down

I have posted recently about our fight with the insurance and mortgage companies after our house burned down last August.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x4203324

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x2666995

In a nutshell, the insurance co lowballed the replacement value of our house and applied a high depreciation factor (we're still fighting with them over that), but sent us a check worth about 2/3 of our mortgage last October. We endorsed it and sent it on to the lender (CitiMortgage)and told them to apply it to principal and give us a new monthly payment based on the reduced principal balance. They refused!
We hired an attorney in December to tell them they had to honor our request in accordance with NC law.
No response. In January I wrote CitiMortgage and told them we weren't making any more payments until they applied the check to the loan balance and gave us a new payment, and furthermore, I was filing a complaint
with the NC Commissioner of Banks and the BBB, and writing letters to all our political representatives if they didn't comply with our request within a week. No response, except a form letter saying our payment was past due.

Last Friday I received a copy of a letter the NC Commissioner of Banks sent to CitiMortgage giving them two weeks to present their side in response to my complaint.

I just now got a phone call from a CitiMortgage person apologizing for not having taken care of this last fall! I asked her what took so long and she didn't know. Right. I told her I hoped that the department we had dealt with would be investigated--and she promised there would be 'feedback given'. Ha!

We got everything we asked for--but only after I raised hell outside the organization and brought
regulatory authority to bear.

I still say this is a micro example of the macro problem: you have to be willing to fight these giant corporations.

Hooray! Now we're hoping to get similar results from the insurance company so we can get on with our lives.

You really have to stand your ground and keep shouting. congratulations on getting some action.

It's no wonder so many people give up.

It takes away a lot of time and peace on mind, but the victories are sweet.

those SOB's stall and stall waiting for people to just give up.

You gotta fight them where they live; in court to get any justice...

and even then, it's iffy.....

Good for you!

But I had full replacement, and didn't get depreciated. It was a water damage claim.

I had to threaten to sue when they wouldn't apply the insurance check to the sales price of the house when I found a buyer.

I was one month away from telling them to shove that house up their ass.

and you can fight with the insurance company over what it's worth".

Somebody finally figured out it was in their best interest to take 1/3 payments for several months and let us do the fighting. Damn.

we have fighting on our behalf says, with 25 years in the business, he's never seen a depreciation factor
higher than 15%.

It's just an attempt at a giant rip-off.

I am sorry you had to go through all of this.

Way to hold their feet to the fire! :woohoo:

so sad so many in your case would think they had none and I bet thats what citimortgage was betting on anyway.

out. Bless you and your family after all this shit. First you are hurt by fire and now this. Honest to god. I LOATHE insurance companies.

when during my first conversation with CitiMortgage person last December I was told "we have to protect our interests." That's when I ended the conversation and said my attorney would be in touch--which did NO good.

I reported that comment to the person I spoke to this afternoon.

general. also, sending it to your senators and reps could get some phone calls going. :) Good luck, hon.

Congratulations! But very sorry you had to go through all this.

And another lesson - the government is important in fighting abuses of corporate power, and it has to do at least some part of its job competently. Unfortunately, if that NC commissioner hadn't acted, I am afraid you would still be struggling.

Thanks for showing us how it's done.