answersLogoWhite

0

When a homeowner has damages that occur to the home due to a natural disaster or other mishaps such as a fire or hail. The homeowner makes a claim with their insurance company. The insurance company will include the mortgage companies name on the check due to the mortgage companies vested interest in the property. If certain criteria are met, the mortgage company will "monitor" or supervise the repairs on the home to make sure that the repairs are done correctly and in a timely manner. The mortgage company will ask the borrower to endorse the claim check and send it in to the Loss Draft Department. The check will then be held in an escrow account. After certain criteria are met the mortgage company will start to disperse the claim check in portions so that that the repairs can be done. These portions are called loss draft checks or loss draft draws.

User Avatar

Wiki User

10y ago

Still curious? Ask our experts.

Chat with our AI personalities

EzraEzra
Faith is not about having all the answers, but learning to ask the right questions.
Chat with Ezra
TaigaTaiga
Every great hero faces trials, and you—yes, YOU—are no exception!
Chat with Taiga
FranFran
I've made my fair share of mistakes, and if I can help you avoid a few, I'd sure like to try.
Chat with Fran

Add your answer:

Earn +20 pts
Q: What is a loss draft check?
Write your answer...
Submit
Still have questions?
magnify glass
imp