Texas Couple Sues Mortgage Servicer For Alleged Refusal To Fork Over Insurance Proceeds To Repair Hurricane Damage

In Jefferson County, Texas, The Southeast Texas Record reports:

• A Jefferson County couple is suing their mortgage company for allegedly failing to endorse insurance proceeds for hurricane damage. Paul and Anitra Henson filed a lawsuit April 17 in Jefferson County District Court against Homeq Servicing, a loan services company. They say they forwarded insurance proceeds of $32,518.88 to Homeq and asked the company to endorse the checks so the Hensons could repair their home, which was damaged after Hurricane Ike.

• Homeq contacted the Hensons and asked them to sign documents in order to have the insurance proceeds released, the complaint says. However, the Hensons allege the packet of information asked them to do things that were unacceptable, such as to find a contractor who would sign a waiver of all current and future liens. "Plaintiffs informed Defendant that this was unacceptable and they will not be able to find someone to sign this in order to complete the work," the suit states. The Hensons say they cannot begin repairs on their home until Homeq releases the insurance proceeds. However, Homeq has yet to release any proceeds. The couple alleges Homeq is guilty of breach of contract and conversion and violated the Texas Deceptive Trade Practices Act.

For the story, see Local couple sues loan company for withholding insurance payments.