Q: Bank is holding insurance claim funds from Hurricane Michael. What happens to funds if I sell my house?
Mortgage lender is holding over $5,000 of my insurance claim funds from Hurricane Michael. I can't get them to release funds even though work is completed. They have came and inspected the repairs 2 different times. I had a disagreement with the contractor before he finished the work, so I finished it myself.(I had to put 4 pieces on tin on the roof of lean-to beside my shed.) I paid contractor money owed and he left. Mortgage company wants a somekinda paper signed by contractor before they will release funds without check made payable to me and contractor. I can't get in contact with contractor and he won't call me back. This has been going on for over 1 year. What will happen to insurance funds if I sell my house or refinance at a different bank?
A:
The bank would release the funds to the borrower on the current mortgage when the time comes, even if you have refinanced with a different bank or sold the house. Make sure they have your current address at all times. Without a release of lien from the contractor the bank will not release the funds without both names on the check. If your contractor was licensed you can check with the local licensing agency for his current address and contact information ,and possibly file a claim against him the the licensing authority, requiring that he provide you with the appropriate documentation.
Good luck.
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