In your "Getting Your Mortgage Company to Release Insurance Proceeds" article, you stated: Q: Can the mortgage company just use the money to pay off the mortgage, even if I do not want them to? A: The short answer is NO. That would also be a “bad faith” problem. Is there any legal authority to back this? And, more specifically, is there any legal authority preventing the SBA from doing this? Thank you.
State: 
New Jersey

About The Expert

Amy Bach

Amy Bach has been a professional advocate for insurance policyholders since 1984 and an attorney since 1989. She co-founded United Policyholders in 1991 and serves as the organization's Executive Director and primary spokesperson; shaping and overseeing the Roadmap to Recovery™, Roadmap to Preparedness, and Advocacy and Action programs. She is a nationally recognized expert on insurance claim and legal matters; frequently interviewed in print and broadcast media, and the author of numerous publications including "The Disaster Recovery Handbook", "WISE UP: The Savvy Consumer's Guide to Buying Insurance" and consumer tips and guides in the UP Claim Help Library.  Recognized by Money Magazine as a Money Hero, Bach is in her eighth consecutive term as an official consumer representative to the National Association of Insurance Commissioners, and is a member of the Federal Advisory Committee on Insurance.