Can Short Sale Bank Pocket Insurance Check ?
I am currently waiting on a SSA from a bank. The home is sold as is and the inspection/appraisals are "n/a" on the dates and deadlines section. I know the bank has collected the insurance check for a roof and glass replacement. My intent is to get the bank to apply the insurance funds before the closing for repairs that my buyer will complete. I will let the bank know I am aware of the funds via the due diligence documents after SSA. Is it legal for the bank to pocket the insurance checks (insurance fraud?)? Is there a way to force the bank's hand in applying the funds to the repairs? If you have been successful please answer with the process and verbiage applied to the situation. I am aware that the leverage for the funds occurs if the bank accepts my offer. If they counter then the appraisal came in higher than our offer.