mortgage company to keep insurance check

[missyc65]

What is the name of your state?Wyoming
our house recently got extensive hail damage. everything that was damaged ( siding, windows, roof) was added by us last year out of our own pocket. now the mortgage company says i have to send them the check to put in an escrow account and they will pay for damages. this doesn't seem right since our loan didn't include the improvements we made.

 

[HomeGuru]

What is the name of your state? What is the name of your state?Wyoming
our house recently got extensive hail damage. everything that was damaged ( siding, windows, roof) was added by us last year out of our own pocket. now the mortgage company says i have to send them the check to put in an escrow account and they will pay for damages. this doesn't seem right since our loan didn't include the improvements we made.

**A: the mortgage lender has a right to make the request. Although your mortgage loan did not include the improvements you made, the mortgage is secured by the real property that includes said improvements. In the event of mortgage loan default, since the lender has a secured interest in the property, the lender would own the improvements that you made "out of pocket".