Product: Mortgage

On XX/XX/2024, our primary residence suffered damage from a broken XXXX XXXX that caused over {$110000.00} in damage. Because we still have a mortgage on the home, the insurance claim proceeds checks were written to both us and our mortgage service provider. We promptly endorsed the checks and forwarded to the mortgage company. It took until XXXX XXXX to receive the first disbursement of {$40000.00}. That covered the cost of demolition and a portion of new materials and supplies ( specifically XXXX XXXX  ) for the rebuild phase. To expedite progress, we simultaneously expended more than {$20000.00} of personal funds to pay for the remainder of the XXXX XXXX, under the assumption we could legitimately reimburse ourselves with future disbursements as all outlays are related to the approved claim. We are simply trying to speed up the project 's timeline and get back into our home ( we currently have temporary living arrangements, though those benefits will reach their maximum very soon ). 
To comply with the mortgage servicer 's requirements, in XX/XX/2024 we requested a progress inspection. The independent inspector noted that the demolition phase is indeed complete and confirmed that to the mortgage servicer. We subsequently requested two additional disbursements related to large and/or long-lead time items, specifically the labor for the installation and staining of the wood flooring and enough funds to provide at least a 50 % good faith deposit to order XXXX XXXX XXXX  as they take 6-8 weeks to arrive. As verifiable documentation we provided the mortgage servicer with a 'paid in full " receipt for the wood flooring, a current project budget from our general contractor as well as the independent insurance adjustor 's approved scope of work highlighting the specific items for which we were requesting disbursement of funds. Instead, the mortgage servicer has delayed, denied and obfuscated at every opportunity and more than a month later we have not had any work done due to lack of funds ( including our own, as we are now maxed out ) despite the mortgage servicer sitting on more than {$70000.00}. They do not view the legitimate purchase of not-yet-installed materials and supplies as " visible progress '' and refuse to disburse funds even though their own policies and procedures clearly state " We value you as a customer and, much like you, want to see your home restored as soon as possible. '' It is important to note that the mortgage servicer does not have a website related to insurance claim management, nor does it initiate outbound communication - the only way to ascertain status updates is to call them and the only way to request disbursement of funds is via email. I was told in a phone communication today that they have ignored previous emails because I did not put my requests into a file attachment. They do not disclose that they don't read the body of any email message. Any approved disbursements take 1-2 weeks to process then arrive in the form of a paper check which is mailed standard first class via USPS ( no tracking number even despite a materially large dollar amount ), meaning it could be as much as three more weeks before we receive any funds. I have had to resort to doing some work myself such as drywall and painting simply to effectuate progress in their eyes.