This is a question for those in the mortgage industry or those who have experienced the below problem;

Several months ago my town got hit with a tornado, and my property sustained a good deal of damage. The insurance company came out and looked at everything and completed the claim against the property, and the same company took care of the trucks and the campers. The amount the insurance paid was more than enough to fix all things damaged/destroyed.

The insurance issued a check, but due to the amount, it had to be signed off by the mortgage company, which is Navy Federal. They in turn only have issued a payment barely big enough to replace the roof on the house, which is only about a third of the total amount given by the insurance company. The roof has been replaced and upgraded to a higher classification.

I have already paid out of pocket to fix my fence and my 20x35 shop, both of which I paid out of pocket for AFTER getting the mortgage. On Friday I am having my replacement carport build started and will have to pay out of pocket for that too because Navy Federal will not release the funds.

The total value of damage against the house was just under 40k with the roof being the largest part, which is fixed. All other damages are against things that I paid for out of pocket AFTER the mortgage was taken out and not used in the valuation of the house for the loan.

Is there any legally to force Navy Federal to release the funds to fix damage NOT A PART OF THE MORTGAGE so I will not have to keep paying for repairs out of pocket and hope they eventually give it up? Does Navy Federal legally have an interest in things that have nothing to do with the mortgage, such as the fence, storage shed, shop and now carport? There are still repairs that we haven't scheduled due to having to having to wait to get money together because Navy Federal is not releasing it. What is the point in having insurance if the mortgage company in turn forces you to pay out of pocket for the repairs with no guarantee of getting MY insurance money back.

Any advice on how to try to fix this, as phone calls are getting nasty and are solving nothing.

I assume you have talked to Navy and what is their reason/excuse? What do they want to cure the problem that they have?

As an aside, mortgage servicing companies do not use your logic so it won't do you any good. They don't care what you did on your own. They care that their asset is made whole.

Example: say the storm completely wiped out your home and additions. So total loss. The insurance company sends you a check for complete rebuild and you keep the money and walk away from the house. That is a huge loss for them.

So now you know why they are holding the money. But they have to have a process to cure the problem. If you are in Texas you could file a complaint with attorney general. Paxton should have a process to file the complaint.

Just don't expect Paxton to help personally because he is in Europe on vacation with his mistress. (Sorry I couldn't help it)

You'll get your money back. So long as you've demonstrated you've repaired whatever was itemized and approved as part of your insurance claim. Just call them and ask to have an inspector to look at the property when you are ready. Most mortgages both are legally allowed to and will hold a fair amount of an insurance claim in escrow prior to the property being inspected for fixed repairs the money is set to go towards.

Also… a mortgage is on your deed, not on the house vs the carport vs. the fence vs. the shop etc. Since the improvements sit on your land… pretty sure they are in fact tied up in your mortgage.

That's what I'm asking. What does Navy want to solve the issue. They must offer a cure and the homeowner must follow those steps.

One other thought is the insurance policy cover the repairs made? For example you can buy insurance that only covers the home. So the repairs may not apply to the money escrowed.

OP not being insured for outdoor property happened to my neighbor. We were hit by a micro storm and tornado in 21, like you. I had outdoor property insured and my neighbor did not. He ate the fence and all other independent structures. Needless to say he is cheap and I'm sure he didn't want to pay the policy rider.