Galveston woman sues loan company for keeping insurance proceeds

John Suayan, Galveston Bureau Mar. 15, 2011, 1:00pm

GALVESTON � Alleging her insurance proceeds are withheld as her storm-damaged house lays unrepaired, Velda Britt is suing Specialized Loan Services LLC.

Britt insists that the defendant would not release a portion of $5,000 she received from her insurer for Hurricane Ike damages, a lawsuit filed March 4 in Galveston County District Court says.

Specialized Loan Services maintains a security interest on the subject property in the 510 block of 13th Street.

Insurance proceeds were remitted to Britt in a check made payable to the complainant and the defendant.

The plaintiff forwarded the specified amount to Specialized Loan Services, but the business "continued to hold a portion of the proceeds and has made it extremely difficult for the plaintiff to make necessary repairs to the damaged property," the original petition says.

It accuses the defendant of violating the deed of trust by not timely inspecting the property, not promptly releasing the proceeds and failing to timely elect the option of whether to repair the property or apply the proceeds to the principal amount owed to the loan.

Britt consequently seeks no more than $75,000 in monetary damages and a jury trial.

She is represented by The Snider Law Firm.

The case has been assigned to Galveston County 122nd District Court Judge John Ellisor.

Case No. 11-cv-0389

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