I would read the trust deed (mortgage) as well as all agreements that you signed with the lender concerning what is to be done when there is insurance money paid to repair the security for the loan. Such documents should shed some light in trying to resolve the problem that you are having with the lender.Sentiment is that the mortgage holder cannot withhold insurance money that is needed to make required repairs to the security for the loan, namely your home. I would write the mortgage holder one last note demanding the release of a certain amount by a set date to cover costs of repairs and if not, you will consult with an insurance/real estate attorney. Keep a copy of the letter for future need and reference.If the due date comes and goes, consult with the attorney to see what your legal recourse is.