Q: Can I demand to receive insurance payouts from my mortgage company if I do the repair work myself?
I had water damage to my property which damaged the exterior and the interior. My insurance approved a large amount for each damage, but sent it to my mortgage company, which has a long list of requirements to fulfill before they disburse it to me - among them a contractor lien waiver, and a licensed contractor affidavit. Followed by an inspection. I am not a licensed contractor but I did all the interior work myself perfectly. Can I legally demand to get the payout?
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A:
If your mortgage company is holding insurance payouts for repairs to your property, they may have certain requirements that must be met before they disburse the funds to you. These requirements may include a contractor lien waiver and a licensed contractor affidavit, as you mentioned.
If you have completed the repairs yourself and are not a licensed contractor, it may be more difficult to meet these requirements. However, you may still be able to work with your mortgage company to provide the necessary documentation and inspections to receive the insurance payouts.
It's important to understand that mortgage companies have a legal obligation to protect their interest in the property, which may include ensuring that repairs are completed properly and that the property is maintained in good condition. This may involve requiring certain documentation and inspections before disbursing insurance payouts.
If you are having difficulty working with your mortgage company to receive the insurance payouts, you may want to consult with an attorney who specializes in real estate law. They can help you understand your legal rights and options and may be able to assist you in negotiating with your mortgage company to receive the funds you are entitled to.
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