Mortgage Company keeping our insurance money??

We recently had barn damage due to wind. Our insurance has paid for building a new building. They have sent us a check to get things started and it is made out to us and our Mortgage Company.  In order to get things started we need the entire check to pay the contractor but the Mortgage Company will not release all the funds until construction had begun.  At that time they will come out and inspect things and then release another part of the money.  Can they leagally do this??


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Since you basically co-own your home with the mortgage company, they need to know that you are not just going to take the money and not make the repairs,leaving them with a "broken" home.  This is common in CA that the checks are in the insured and the mortgage company's names.  Different mortgage companies handle them in different ways.  You may need to speak to a manager or someone higher up on the corporate level of your mortgage company and explain your personal financial situation and see if they will budge. 


Posted 3 months ago ( permalink )
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This is something you want them to do.  It is for their protection as well as your own, all they are doing is making sure that the contractor is using that money to rebuild your structor.  If the mortgage company paid the contractor all the money up front and he never came back then everybodys out.  It's like a lock on your door....it keeps everbody honest.


Posted 2 months ago ( permalink )
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