Thursday, December 29, 2005

Chiseling by mortgage company draws investigation.

As if flood victims didn't have enough to deal with, now mortgage companies are delaying insurance payments.

Over a dozen formal complaints have been filed with Attorney General Charles Foti's office, alleging that Countrywide has received insurance money meant for homeowners needing to repair their homes, but held on to the cash for an unreasonable amount of time, Foti spokeswoman Kris Wartelle said. Many such insurance checks require a signature both from the homeowner and the mortgage company before the homeowner can receive the cash. One Louisiana homeowner told investigators that Worldwide held his $111,000 in insurance payments for more than a month, forcing him to produce $50,000 to pay contractors repairing his storm-damaged home, Wartelle said.

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