Q: Carrington Mortgage Company said they're going to decide how the money is spent to fix our home that we received from ou
Received insurance check from hurricane damage in our name and mortgage company name mortgage company decides they're going to divvy it out in small increments and our contractor does not want to wait also Mortgage Company claims that they can keep whatever is left and put in an escrow account which we don't even have an escrow account so why do they get to keep the money and why do they get to decide how that money is spent if we want to get our home fixed why do we have to wait for our money
A: Your mortgage company is considered an "additional insured" and as long as you have a mortgage, insurance proceeds are typically paid to the mortgage company, not the homeowner. Encourage your contractor to accept the payment schedule proposed by the mortgage company or hire one that will so you can get the job done. Best of Luck! Jennifer
A: Via your mortgage the mortgage company has a "lien" on the insurance funds as well and can place the excess into an escrow account toward what you owe them.
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