If the check is large and you have a mortage the money goes to the
mortage company to assure the property doesnt go down in value.

This involves perodic inspections during repairs, photos of work to
prove its been done to code etc etc etc.

a real PIA.

for 500 bucks they may just cut you a check but if its a lot of
money theres a long list of requirements so you cant just get the
check and go to vegas