So, back in December we applied for a HAMP mod. After months of faxing paperwork back and forth, we were approved in May. Our current payment is $1118.54, interest only. Rate is 7.75%, balance $182,000. They offered a mod payment at $1412.67, which we rejected. We aren't able to pay an increase of $300/mo. We use our tax return for our property taxes and can't afford to escrow them and pay them month to month.
During the time we were applying for the mod, Aurora took it upon themselves to send State Farm (our homeowners insurance company) a check for $500+ for our homeowners insurance for the remainder of the year. We were current and paid monthly. They also chose to set up a property tax escrow, but we are current and nothing is due until January 2013, so no money was paid to my local county.
Even though we rejected our modification, Aurora won't cancel out our escrow account. Our "point of contact" told us all we needed to do was fax proof that our property taxes were paid up and they would cancel it out. After several calls to customer service, I was told neither escrow can be closed out until our negative escrow balance is brought to zero.
I contacted State Farm and they are sending out a refund to Aurora for the unused premium and I will be paying off the rest of the balance, bringing my escrow account to zero.
I was able, after much begging and pleading, to set up a "regular" payment in the amount of $1118.54 to come out at the end of the month. They have our current payment due at almost $1600 because they are including our escrow accounts.
To make matters worse, our wonderful "point of contact" won't get back to me at all.
Has anyone had this experience? I'm hoping once I pay my escrow portion and state farm's portion is received, they can FINALLY cancel my escrow accounts. It makes me nervous that I can't make a normal payment online!