Tricky Situation

Okay… I have an insurance claim Im working on… The claim has been approved… I have a signed contract with the homeowner… The check has been sent to the mortgage company(BoA) for them to sign. Heres the tricky part… the home is in foreclosure, and the homeowners have just filed for bankruptcy…So basically my contract with the homeowner is worthless but she said she will still let me do the job until the house is completely taken… Ive spoken to BoA and they said they will be writing the check to my name as well as the homeowner but they will be mailing the check to me instead of the homeowner because of it being in foreclosure… Ive asked for 50% down payment from BoA before I start which will basically cover my costs on this job. I just feel a little nervous wondering if BoA decides to not send the final payment because they found out the homeowner filed for bankruptcy or something like that… anyone ever dealt with a similar situation?

I would suggest you call your attorney and run the scenario by him or her.

I would not do the job your asking for a serious issue.

Sounds messy. I know the feeling – it could go fine, but there’s a chance it won’t. If the bank decides not to send the 2nd payment you’re either out that money or left chasing them down which will be expensive and time consuming.

Couldn’t you get something in writing about the 2nd check from the bank?

Mass… That’s exactly what I was thinking… Get something in writing… That way I’m covered… If for some reason they didn’t pay I would lien the property and i know they would want to get all that taken care of so they can sell it to someone. I’ve had many cases where the banks have outright payed me to do foods that they had that they were trying to sell. So I don’t see any reason why they wouldn’t pay for something that they were given the money for. They need to have it replaced before they would be able to sell it. So it seems like their is a narrow set of circumstances that I wouldn’t get paid.

Depending on the size of the job…if small, I’d cancel due to “circumstances beyond my control”/unforseen circumstances. If larger and there is a decent profit, spend some of that potential profit on a good lawyer to cover your assets. Is the HO likely to care if you get paid considering he/she didn’t care if the mortgage got paid. I understand that the HO may have just fallen on hard times and may fully intend to make sure you get paid everything due you, but, in this situation, hard to know what is really going on/what might happen. There are so many variables here that it can get real messy real fast.

Good Luck!

It’s not a huge job… But it’s got good profit… The job is priced at $7200 and my cost in it is about $4000… and I’ll get $3600 down payment before starting… But of course I would rather not touch it than to lose money by not getting the final payment. It seems like there would be some rule or law about this

I would definitely contact my attorney.Those issues change minute by minute IMO.You have to realize that money is owed.

The homeowner is in foreclosure from obvious default.Crap happens and its not your problem.Heartless or not.For whatever reason they are a credit risk.

The mortgage company is obviously taking a huge loss.They could be fine with it now,this minute.But tomorrow they might change their minds.It would suck for you to do the job,submit the final then be told by the mortgage holder to get in line.

I am not an attorney and have never professed to be.I would listen to most replies with the comments but before you made a decision call your attorney.

People fall on hard times either my destructive traits or being caught up in the economy.As hard as it might be don’t allow yourself to be emotionally involved and end up right in their bucket of sh**.

Call your attorney.

BofA is a criminal enterprise-there’s a reason they are called Banksters. Organized crime and organized money are one and the same. Consult an attorney who’s familiar with both.

Just got off the phone with them and I convinced them to send the full amount in the beginning. So I will wait a few days for the check to see if it comes for the full amount… if it does then, no worries…will keep you guys informed of what happens in case you ever run into a similar situation

Have you ever found yourself in a situation where you thought you could do everything…so you load up on scheduling and try to do everything as much as possible to maximize your efficiency (or profits for that matter), knowing that it will only take one piece for it to begin to collapse!

As I read your post, I started to get this feeling. My wife recogizes this as well. She is a straight shoote and she tells me that I am getting “too greedy” (maximizing money earned). And if you proceed…It could collapse very quickly on you.

I choose to take a deep breath and let it go (let the contract go) and walk away!