Hello everyone. Running into an issue with my mortgage servicer who is attempting to withhold 10% of an initial payment from my insurance company to replace a hail damaged roof. I already have a contractor waiting to get payment from me to start the work (50% up front which I refuse to pay out of pocket) but when I sent the check off the be signed by my mortgage company they called to tell me they were going to keep 10% so they could “monitor” the claim. The check is for $10,021 and they said that since it’s over $10,000, Fannie Mae guidelines instruct them to withhold 10% and they said once the work was complete and they sent an inspector out they would release the remaining 10%. Https://www.fanniemae.com/content/guide/servicing/b/5/01.html.
This article is what I have found they are referencing, but nowhere in there does it say they are authorized to keep the money. I understand their vested interest in having the roof replaced but to be honest I have a hole in my kitchen ceiling from water leaking while we were out of the house and I have lost all my patience in getting this resolved. I’m not keen on floating a bank MY money that came from the insurance that I pay for.
Am I wrong or are they? If so, what is my recourse?
Submitted October 13, 2018 at 12:07PM by home_theater_1 https://ift.tt/2EkCWJL
