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Mortgage company holding funds issued for home repairs

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B. J. Guest	Posted: Thu Dec 04, 2008 8:12 am    Post subject: Mortgage company holding funds issued for home repairs Like 0 Dislike 0 I live in Texas and we suffered damages to our home from Ike. Our insurance company has issued a check for the repairs and the dollar amount seems very close to the actual cost for repairs. The insurance compnay is holding a part of the repair funds and now the mortgage company says they are going to hold part until 95% of the work is completed and has been inspected. Can they do that? How am I supposed to get the repairs done if parts of the funds are being held? Am I expected to come out of pocket first? I pay my homeowners ins. and my mortgage so why are they holding onto the repair funds? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
jameshogg Joined: 20 Dec 2005 Posts: 10477 Location: Nevada 990.06 Dollars($)	Posted: Thu Dec 04, 2008 11:21 pm    Post subject: Like 0 Dislike 0 Hi B. J., Yes, the mortgage company can hold back the funds. They are doing this to insure that your building which is their collateral is repaired as needed. You should ask the lender to give you a document stating that the funds are available and will be released to the contractor when the work is completed. Thanks

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