Licensed Contractor required for ins. repairs

[DeepSouth]

From Long Beach, MS.

Hello, we were impacted by Katrina, and so I have various repairs that need to be performed to my home. I just talked to my adjuster whom said we would be receiving 30K to perform these repairs. After talking with the adjuster I called the mortgage company to find out how I would be receiving the money once they endorse the check. They indicated that they would immediately distribute 20K of the 30K. The remainder would be put in a restricted escrow account (with no interest). They informed me that in order to draw on the remainder I would have to supply documentation of repairs performed by a licensed contractor.

This is where my problem begins. I was intending on performing all of the needed repairs to my home myself, but being that I'm not licensed they will not release the funds to me. I fully intended on using any remaining money that I saved doing it myself on other enhancements to the home. I'm not sure why they require a licensed contractor, when all they have to do is inspect the property for adequate repairs to restore the value. Any advice would be appreciated.

 

[alligatorob]

I am not sure what the law says but I have had no trouble getting the insurance money and doing the repairs myself. I suggest you just tell the mortgage company that you plan to do the work youself and not to hire a contractor, see what they say. In my case they did not question the cost, they had no problem paying me the full amount of the damage and not my actual cost. They just wanted evidence that I had a legal building permit and that the work was done.