April 18, 2016
Today, an Okaloosa County, Florida Circuit Judge denied a Motion for Summary Judgment filed by Citimortgage, Inc. which claimed entitlement to insurance proceeds issued in connection with a claim for damage to the homeowners’ property. Jeff Barnes, Esq. represents the homeowners and argued the matter this afternoon in a hearing lasting almost an hour.
The homeowners’ property was damaged by water. A claim was made to the insurer, which issued checks for repairs payable jointly to the homeowners, Bank of America (which was on the second mortgage), and Citi. BOA agreed to remove its name from the checks so that the monies could be given to contractors to effect the needed repairs. Citi refused to release its name from the checks.
Citi claims to be the downline successor to the original lender. Citi had filed a foreclosure action and maintained that it was the “Lender” under the Note and Mortgage although that issue remains disputed. The damage occurred during the course of the foreclosure case, which remains pending.
Citi claimed that there was no issue that it had the right to control the insurance proceeds. The Judge denied the motion, stating that the Motion itself, when viewed against the filings in the matter, raised issues which precluded summary judgment. The case will shortly be scheduled for trial on both the foreclosure and insurance (interpleader) cases, which have been consolidated.
Jeff Barnes, Esq., www.ForeclosureDefenseNationwide.com