Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Written by

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Reviewed by Jeffrey Johnson
Managing Editor & Insurance Lawyer

UPDATED: Jun 26, 2012

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Insurance Question from Bastrop, TX

Asked on 06/26/2012

What is our mortgage company’s obligation in regards to releasing funds for fire damage? We are rebuilding a large shop after the Texas wildfires last year. Our mortgage company is refusing to release our funds for rebuilding. At first they sent an inspector out and he stated the building is only 30% done, when our contractor said it was more than 80% done. The mortgage company sent us a check for 60%, but it took over a month from the time of the inspection to receive it. Now we are trying to get the remaining funds released, and they are ignoring our requests for a final inspection. We can not wait another month to pay the contractor.

Answer given on July 02, 2012

If you are repairing the property that was damaged and the insurance company has sent checks to the mortgage company, the mortgage company is expected to release the funds as work progresses. It appears there is a communication problem between you and the mortgage company.You should contact your contractor to see if they can speak with the mortgage company to try to determine why the payments are not being released. If that does not work, try speaking with a supervisor at the mortgage company to see if they can help get the funds released. Maybe you can go to a local office, if there is one, and see if an officer there can help you contact the appropriate person for the release of the funds.If none of the above suggestions work, you may have to contact the Dept of Insurance to see if they can assist you in getting the funds released. That can take some time, so it may not be the best option, but it may be the only way to get the money released.


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