GMAC Mortgage Insurance Claims Dept. GMAC Mortgage GMAC withholding insurance claim check! My house is rotting! Internet

Our house had a flood in August of 2010.  Our insurance adjuster came out, and wrote us a check for $11,420.00 to cover the cost of the repairs.  The check was made out to my husband, myself, and GMAC Mortgage, who is our mortgage lender.  I was told to call GMAC about getting them to endorse the check.  I called them, and they stated they would deposit the money in their account, and disperse the money in thirds to a general contractor.  My husband owns a Water Restoration Company, but is NOT a general contractor.  He subcontracts a lot of his work, and we wanted his company to do the work.  After 2 months of fighting with GMAC over this, they finally agreed to release the funds.  An additional $1300.00 was also sent to them, for the work our Restoration company did to dry the structure.

I got a call last Tuesday stating that the check had been approved by management to be sent to us, and it would be FedEx'd by Friday.  My husband and I were ecstatic that we could FINALLY get our home fixed.  Friday comes around, and I get a call from 480-000-0000.  When I answered it, it was GMAC's Insurance company stating that the check went through another approval process and was denied because when they originally approved it, our house appraised for $187,500.00, and when they reviewed it, our house only appraised for $160,000.00 and we did not have enough equity in our home to cover the amount of the repairs.  Now they are back to their tricks of saying we need a general contractor and they are going to disperse the money at their discretion, and have an inspector come out and monitor the repairs.  Has this happened to anyone else?  I have HAD it with GMAC and want to fight them on this all the way.