Getting your third party authorization signed before you begin each claim’s restoration/mitigation project, or at the same time you get Your Company’s work contract/authorization signed, may be the most important step of the endorsement process for several reasons. To begin with, and if approached correctly, you can let Your Customer know that it is simply a required part of the process and is done on every claim. It immediately lets Your Customer know that this is normal and that you ARE going to be involved in the endorsement process.
So what exactly is a third party authorization? A valid third party authorization allows you two very important advantages. First, to be able to speak to and get information from Your Customer’s mortgage company, and second, to be able to get claims checks and documents sent directly to YOUR COMPANY’S address. The latter is a huge advantage for several reasons, the main one being that it puts the check, and control, in your hands. Many dishonest home owners view that check as a bargaining chip to basically extort extra work from mitigation/restoration contractors. By taking that scenario out of the equation you are already way ahead!
The majority of the time Your Customers will welcome the offer for you to completely handle the mortgage endorsement process. Most customers are generally overwhelmed with all the cursory busy work and general inconvenience of their claim, that if properly posed, the offer to lessen their burden is usually gladly accepted and can actually be a great selling point.
Another reason the third party mortgage authorization can be an invaluable asset is to ‘check up’ on a customer’s payment status before your company becomes too monetarily invested in a claim. This specific aspect is aimed more towards larger restoration claims, but can be a life/company saver! Once your third party authorization is faxed to Your Customer’s respective mortgage company and is on file so that you may discuss their account, you will be able to discover the home owner’s status by a simple phone call to their mortgage company’s loss/drafts department. Legally they cannot outright tell you that the customer is behind, but if they say that their loan is ‘being handled by a different department’ or you are going to need to contact the ‘foreclosure’ or ‘recovery’ department, or even simply tell you that the customer is going to need to call–you know there is an issue. If you get ANY red flags, simply ask the person at loss/drafts department! Their answer, or lack there of, should immediately enlighten you to Your Customer’s status.
Remember, and this is VERY IMPORTANT–IF THE CUSTOMER IS BEHIND ON THEIR MORTGAGE PAYMENTS ALL AUTHORIZATIONS, DOCUMENTATION AND INSPECTION RESULTS ARE MOOT!! There have been many, many honest and hardworking restoration companies that have fulfilled their obligations and completed insurance program work in a quality manor, yet have had to eat the entire cost of the job because they did not adhere to the valuable information that we are providing. Get your third party authorization signed, faxed to loss/drafts, and on file!
Now go and get Your Money Faster.