21st Mortgage
Advises it's legal to steal your insurance money?

My family and I live in Baytown, TX. Our mobile home received an estimated $13,000 in damage due to Hurricane Ike. After receiving the check that was made out to my husband and 21st Mortgage, my husband called 21st to ask how much money they would release at first, so that we could begin our much needed repairs to our secondary roof and AC unit. He was told that since our damages exceeded the amount that we owe on our mobile home, which is around $7,500, they would pay off our loan then send us the remaining amount to repair our home. He then asked why our home was not payed off back in 2005 when we received $21,000 in damages due to Hurricane Rita. At that time our loan was around $12,000. He was advised that it just "slipped through the cracks".
We even sent pics to the mortgage company back in 05' of the improvements made which included many extra's that weren't even included on the original estimate, which included a 60' covered porch across the front.
When my husband asked how we were supposed to repair $13,000 of damages with $5,000 he was told that he'd have to decide what his priority would be.
I'm looking to find out if anyone knows if this is legal. Several people have said no. My husband spoke with another insurance company that said it shouldn't be, because of the fact that we have replacement insurance.

Company: 21st Mortgage
Country: USA
State: Tennessee
City: Knoxville
Address: 620 Market Street, Suite 100

  <     >