We bought a damaged home after Katrina (stupidly) from a family member, owner financed, where she added her husband as a benefitiary of the mortgage even though he didn't own the house. We paid FMV for a repaired home. We also signed a seperate document that granted us all of the proceeds from insurance to repair the home be given directly to us by the family member.
The relationship went sour and the family member kept all of the insurance money. We had to get an attorney (pro bono)to get some money released to repair the home. Home repairs were completed and we requested the rest of the insurance money they were still holding until repairs were complete. They wouldn't pay it and then family member died. After litigation about the will, her husband got her entire estate so we requested from him the remainder of the insurance money. He refused. We provided an inspection in April showing the home was complete. He sent only 5% of amount still owed claiming paid in full.
Two questions: since the contract was originally signed in Dec. 2005, has the statute of limitations run? The last act of attempted partial insurance payment was April of this year.
Second, is there some provision that we can apply the insurance money still owed to the principal or some other way to collect, like not paying the mortgage until the insurance amount is reached or anything like that so we don't have to sue? We just went to court with him over the will issue and he has no problem spending tons on attorneys and giving us the run around with frivilous issues that run up our attorney bill unnecessrily. We can't afford another round in court like that. Thanks
