We had an UNBELIEVABLE hail storm here in October 2010. I wanted to post this video as part of this blog to give you an idea just what I am talking about…(not my video personally…but shared on YouTube).
Since then our area has been overrun with people from all over the United States trying to cash in on repairing the damage. I am absolutely sure that a large percentage of these folks are honest hard working people with good intentions. What worries me however is if you choose a contractor from Ohio (or where ever) to repair your roof…and you find it is leaking NEXT October…who are you going to call?
From what I have been able to understand from clients and friends, these people are partnering with local contractors. OK. So a contractor here hires ten guys from out-of -town to bid jobs and oversee the work. I have to wonder about the quality control aspect. I would hate to have all of that vicarious liability.
You can go here to the Arizona Registrar of Contractors to see if they have any reports of interest. You can also go to the Better Business Bureau and see what you can discover. This is the LEAST I would suggest prior to entering into a contract for repairs.
Then another thought occurred to me. In my personal experience (and this is the same with many others I have spoke with) if your repairs are over a certain amount, typically $10,000, your checks will be made payable to you AND your mortgage company. I suppose this is reasonable.
It’s likely a pain…but you will have to get the mortgage company to endorse the check prior to getting repairs started. Not the end of the world…but what about this scenario?
What if you are behind in payments? What if you are in the middle of negotiating a loan modification or a short sale. Will the banks willingly release the insurance claim money to you by endorsing the check?
Better yet what if a foreclosure is scheduled and the money is enough to catch up your payments? Is it OK if people use the money for that rather than the repairs?
Our insurance company is issuing two different payments. The first is the replacement value less depreciation. In our case that is roughly half. The second payment is for the recovered depreciation. It is a learning curve for me…and I am sure your insurance agent can better explain it…but I know that we will receive the balance of the claim amount after we provide receipts showing the work has been completed.
I have heard many stories from my “peeps” about their personal experiences. But I am very curious to see how this plays out with folks who are in the process of losing their home…or maybe doing a loan modification.
Anyone out there have any thoughts. I would love to hear your personal experience. But I am really writing this to give folks a “heads UP” to researching your contractors and making sure they will be there later to stand behind their work.
As always… if you are looking for a GREAT agent to help with your real estate needs please e-mail me atAdele@GreaterPhoenixHomes.com or give me a call (or text) at 602-504-3898 or 888-897-7821 x 114. Plus, I have a GREAT search tool on my web site that gives you the ability to search the entire MLS…just like agents do. Very COOL! Go to Metro Phoenix Homes and check it out! YOU can create and save as many searches as you would like…and it is THE SAME SEARCH I DO AS AN AGENT! You will LOVE it!