Mortgage company refuses to sign insurance repairs check!?

We bought a house owner financing over a year ago. We had homeowners warranty on our roof for full 12 months, that guarantees any roof repairs and damages. We tried to claim the roof warranty with our private mortgage company but he said the roof was fine and it had no damages at all. Anyway, we claimed our insurance , and they approved the hail damages and necessary repairs to be done. They cut a check to us and the mortgage company. Now , the private mortgage refuses to sign the check until we have the roof done. And he also keeps saying that he wants to inspect the job , to make sure it has been done before he signs anything. What should we do?
He’s a control Freak! We are very upset and we feel like this is not our house at all!

5 thoughts on “Mortgage company refuses to sign insurance repairs check!?

  1. Correct. They won’t sign off on the check. You CANNOT get your hands on tha tmoney.

    They will release the funds to the contractor, as the work is done. Even if it WASN’T a private mortgage company, this would happen.

    The way to get around this, is to have the check reissued directly to the contractor who is repairing your roof – you can usually do that by signing a “direction of pay” form for them. Oh, and you don’t want to do that until the work is complete.

    So. Go to the contractor, get the written, agreed upon price, go to the insurance adjuster, give them the original check back, and the contractor estimate, then let the contractor do the work, and have the adjuster write them the check.

  2. StephenWeinstein says:

    In a sense, it is not your house. You do not pay out of pocket for it. The mortgage company’s money, not yours, was used to buy the house.

    There has been a major problem with homeowner’s keeping the money that insurance company’s pay, not having the repairs made, and walking away from the house and mortgage, leaving the mortgage company with an unrepaired house that cannot be sold. They are correct to insist on performing an inspection to make sure that you really had the roof repaired.

  3. Refi so that it is your house.
    But my guess is you don’t qualify for a traditional mortgage so that is why you did owner financing.

  4. Realtoratheart says:

    No he has the right to do this, as the private owner. As owner of the house, he wants to make sure your claim is completed. If it were just between you and the insurance company and the repair company, then the check would have been sent directly to the repair company. It do make sure YOU don’t keep that money. If the job is complete, let him inspect it , technically he owns the house.

  5. They are absolutely in the right to do this. They want to make sure that the repairs are actually completed before signing over the check.

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