To put it simply, which I'm not entirely sure is possible, the mortgage company or insurance company screwed up on our flood insurance. Back in February, we set up both the home owner's and flood insurance. We have had trouble ever since.

1) February: Mortgage company processes flood insurance declaration, and payment is disbursed from escrow.

2) May: Oh goodness, Mortgage Company has not received flood insurance information. I rectify the matter and have the information faxed over from my insurance. Am assured that all is taken care of.

3) June: Another payment (huh?) is disbursed from our escrow account (please see #1) and mortgage payment goes up (because, you know...your insurance went up M'am). Contact mortgage company, straighten out insurance problem and duplicate payment is credited to escrow account. Yay! It's all fixed.

4) July/August: No notifications.

5) September: Get notice from Mortgage Company that they are claiming their intent to foreclose on our home because we are TWO MONTHS BEHIND ON OUR MORTGAGE PAYMENT. Huh? WTF??

At this point, I double check my bank account and sure enough, they have cashed both checks (July, August). I called the insurance company and was informed (at this time I was talking to the collections department) that my mortgage payment had gone up in July to the tune of $155. When asked why, they told me it was because my insurance premiums had gone up and there wasn't enough in my escrow account to cover it.

I asked to be transferred to the insurance department, because you know, they compartmentalize all of these things, and nobody can give you the whole picture. Each time you transfer, you are generally on hold for around 10 minutes. When I reached the insurance department they told me that they had issued "forced" coverage for my flood insurance in the tune of (ba-dum-bump) $981 (more that three times my coverage I set up in February). They will not post your mortgage payments unless they are paid in full. On a side note, we received no notice that our payments had gone up or I would have taken care of it right when it happened.

After making a call to my insurance agent, whom by this time, I'm on a first name basis with, and I know the names of her children and animals (she has an Iguana named Fred), we decided that once again, we would send the flood insurance information over to my mortgage company to, yet again, straighten things out.

In the mean time, I found out what I needed to pay to clear the mortgage owed to date (even though it was wrong) because I wanted to get out from the "intent to foreclose" procedure. I figured I'd worry about the refunds later.

As I said in the first paragraph, I was on the phone for 1 hour and 7 minutes with them. I got transferred three times to different departments. They "say" they have received the insurance information and in about two weeks, all should be cleared and that they will credit my escrow account the extra money that I have paid.

My question? What will happen in October?