2 Responses to “Can a Mortgage Company hold your insurance check for the repair of your building?”

1. mbrcatz17 says:

   August 16, 2009 at 8:34 am

   Ask the mortgage company if they’ll release the funds directly to your contractor.

   OTOH, MOST contractors will do the work, and THEN let you pay . . .

   But yes, they can do that.
2. acermill says:

   August 17, 2009 at 7:00 pm

   Yes, they can do that. They are holding the funds to insure that your building (THEIR collateral) is repaired as needed. You should be able to get a contractor with a letter from the mortgage firm indicating that the funds are available and will be released to the contractor and you when the work is completed as needed.