Mortgage Company escrow problems?

If You’re Having Problems With Your Escrow…

Here’s how to troubleshoot and keep your rebuild moving.


This guide was built in partnership with AIA. 
fact-checked by licensed professionals and building experts. 
Consult a builder or architect for specifics to your situation.

1.

Identify the problem

Start by getting clear on what kind of problem you’re having:

  • Delays: They’re not releasing payments quickly enough for your builder to keep working. Check and see if what they consider a “progress milestone” is different than what the builder considers a milestone to be. Make sure they are aligned. 

  • Paperwork: They’re asking for new forms, photos, or unclear documentation.

  • Miscalculations: They released the wrong amount, or applied funds incorrectly.

  • Communication: You can’t reach your assigned claim or escrow officer.

Write down the issue, date, and any attempts you’ve made to resolve it - this becomes your log if you need to escalate.


2.

Check your loan documents and insurer letter

Locate:

  • Your mortgage deed or servicing agreement: it spells out your escrow rights.

  • The “mortgagee clause” on your insurance policy: it shows who controls the disbursements.

  • The insurance loss draft letter you received from your mortgage company: this outlines exactly what they need before releasing money (inspections, contractor licenses, W-9s, etc.).

If you can’t find these, ask your mortgage company in writing for “the insurance loss draft procedures.”


3.

Call your insurance adjuster

Your adjuster, your mortgage company, and your builder need to stay in sync. If the lender isn’t releasing funds, ask your adjuster to send a confirmation letter verifying that the work completed matches the release stage. Sometimes that’s all it takes to get the draw moving.

4.

Escalate to a supervisor

If you’ve submitted all documents and the money still isn’t moving:

  • Ask for the Escrow Department Supervisor or Loss Draft Department Manager (not just the call-center rep).

  • Stay polite but firm:
    “This delay is halting construction and creating financial hardship. Can you escalate this for immediate review?”

  • Keep a record of who you spoke to, when, and what they said.


5.

If the bank still won’t release funds

You have options:

  • Contact Fannie Mae’s Here2Help Program (Call 855-HERE2HELP) for a free HUD-certified housing counselor who can assist with disaster related financial issues.

  • File a complaint with the CFPB (Consumer Financial Protection Bureau): www.consumerfinance.gov/complaint/

  • File a complaint with your state’s Department of Financial Protection & Innovation (DFPI) if your lender is based in California: dfpi.ca.gov/file-a-complaint

  • CC your insurance company on the complaint, it helps add pressure.

6.

 Involve your contractor wisely

Do not let your builder pressure you to release funds early.

Remind them that escrow protects both sides - when paperwork is clean, draws move faster. If they’re threatening to stop work, loop in your lender’s loss draft department and insurance adjuster immediately to show you’re acting in good faith.


Stay proactive

  • Submit documents early - inspections and draw requests can take 5–10 business days.

  • Keep all communication in writing.

  • Follow up every 3–5 days if you don’t get confirmation.