I bought my house two years ago. When I bought it, all of the paperwork was filled out, and it was set up that part of my monthly payment would go into an escrow to cover the insurance premium that comes through every year, as well as the taxes. This is the second year in a row that I've received notification from the insurance provider that my insurance premium was not paid and that my insurance policy would be cancelled. I also received a letter from the bank which handles the escrow and all of the taxes/insurance payments through said escrow, saying "Per the loan agreement you signed, you are required to have physical damage property insurance. You are in violation of this agreement." Basically saying I needed to pay the insurance company myself. I called the insurance agent, and they spoke to the lender(Alcoa), and called my back saying "They lost the bill". I put in a call to the lender and I am waiting for the mortgage officer to call me back. You can go to sleep tonight knowing that that mortgage officer won't have an *** to **** with when I am done. This is outrageous. Two years in a row, the same bullshit. This has been set up to work properly since day one. They have pissed in the wrong guys wheaties.

That sucks. We have the same setup, along with property taxes, and I decided against it when we buy our next house in the spring. I'd rather have the money sitting in my bank account earning interest insteading of sitting in the banks pockets for a year.

Give 'em hell, Doug. That'* a bunch of crap. How can they lose the bill and then send you notices like it'* your fault? That'* like them saying "Sure, we'll handle this for you.... but if we f*ck it up we have no responsibility for what happens" :?

That'* a load of bullshit right there.

My neighbor was complaining about his escrow a couple days ago. It didn't pay their taxes so they got a letter that their house was going up for sale in 3 weeks.

You can cancel that at anytime, FYI.

In Doug'* case, that'* exactly what I'd do. Cancel it now since they can't seem to handle it.

I've had that happen twice before. First time was due to the mortgage being sold and resold. Second time was after I refinanced the loan back in 2001, they "lost" the information.

Typically a few phone calls will straighten this out. You should not have to pay the insurance company yourself. Call them and expalin the circumstances and then get the mortgage people back on track.

Also, you might want to make sure that they have all the tax info correct while you are at it. It'* almost time for them to pay those too.

While I know that this is a big hassle (I know that I wasn't happy either time), it is fairly simple to correct and will be over soon. I also know how easy it is to get heated and overdo the chewing out, but it will not help you get this resolved and very well may get in the way of it.

So, I suggest you vent here and then handle it very professionally on the other end. Your results will be quicker and better, IMO.

I know when I see the morning report and it has an escrowed homeowners policy past due I will call the mortgage company directly regarding the billing. I try to save the customer the hassle but you'd be surprised at how often it happens.

I look at it this way, and I will tell it no different to the lender. The agreement was simple. It gets escrowed, which I still collect intrest on, then it is automatically withdrawn come time for taxes and insurance. They haven't missed the taxes, but they missed the insurance two times. I'm only venting a little here because I do not ******* appreciate getting nasty-grams in the mail regarding something that WE agreed THEY would handle. If THEY can't handle it, THEY need to fix it, and THEY need to send me a WRITTEN letter of apology. This is my very livelyhood they are ******* with, and it'* not just as simple as "We lost the bill". If I'd lost that bill, I'd be in a world of hurt with jacked up late fees and who the hell knows what else? To top if off, they haven't even had the courtesy to call me back today to say "Yeah we fucked it up, we're sorry, and a letter is in the mail saying we are sorry". I'll give them until 10:00AM tomorrow to return my call. After that, the gloves come off and I'm out for blood.

So I guess you can go to sleep tonight knowing that TOMORROW, the mortgage officer won't have an *** to **** with.