I had a tree damage the roof or my home and cause over $37K in damages. My mortgage company want to hold the payment in escow and issue me the money after I supply receipts. I am current on my payments. Is this legal?

I don't know about "legal", but it is fairly normal. They have a huge interest in the property and they see it as their right to make certain that the repairs are actually made - thus protecting their investment. I know it seems ludacris to you that you'd do something else with the money and not make the necessary repairs, but there are tons of people out there who have done just that.

Actually, the more I think about it, I'm sure it's legal, because you name the mortgage company on your insurance policy as the LOSS PAYEE. That means in the even of a LOSS the check gets made out to them and you. Not just you.

I'm sure if you read your mortgage and your insurance policy it's all laid out. Have you talked to your insurance agent about it?

I know it seems incredibly controlling, but other than that, what's the problem? Is your contractor wanting partial payment up front or something? The mortgage company should be used to that kind of stuff and have some provisions for it?