How does the mortgage company distribute funds when the claim is monitored?

How does the mortgage company distribute funds when the claim is monitored?

Typically, mortgage companies will release 25-33% of the first check and sometimes up to 50% with a contractor agreement in place to complete the repairs. Additional funds are released at certain points of repair completion and verified by a third party inspector (usually 50% for mid-build disbursement and 90-100% for the final disbursement).