Does My Lender Have Any Say Regarding Settlement Checks For Home Repairs?
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UPDATED: Jul 16, 2021
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Mortgage lenders will require that all the money paid by the insurance company be used for repairs on the home. To protect its financial interest, the mortgage lender will require the insurance proceeds to be paid into an escrow account from which contractors, materialmen, and labors will be paid. The lender cannot keep the proceeds of a settlement to cover your loan balance.