Can a mortgage company keep an insurance check from heirs? | NC

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Q: Can a mortgage company apply an insurance check to the mortgage balance instead of releasing it to the heirs? A: Yes... often it can. If the property is still subject to a mortgage, the lender usually keeps its lien rights even after the owner dies. That means insurance money for damage to the property may be controlled by the lender under the loan documents. If repairs are not being…