My mortgage company has kept insurance proceeds from a fire claim I had on an investment property. They took the money and applied it to unpaid principle, and to what they called unscheduled payments. Now I can't pay my contractors and have been sued for the work they have completed to date. How can I get the mortgage company to pay the contractors, since they have performed the work and need to be paid. I am currently being sued by the contractors for 54K, and my mortgage company has kept 72K of the insurance proceeds.
Because you have already been sued, you need to talk to an attorney, who can review the terms of your mortgage agreement to determine whether the mortgage company's actions are permitted or not. It may be the case that the mortgage company is holding funds pending documentation that repairs to the building have been made or are underway. Your attorney may be able to facilitate a discussion with the lender and contractors that could result in an agreement to free up the funds.
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Because you have already been sued, you need to talk to an attorney, who can review the terms of your mortgage agreement to determine whether the mortgage company's actions are permitted or not. It may be the case that the mortgage company is holding funds pending documentation that repairs to the building have been made or are underway. Your attorney may be able to facilitate a discussion with the lender and contractors that could result in an agreement to free up the funds.