How can I fix my mortgage payments?

I switched my homeowner's insurance from State Farm to GEICO and my escrow got all messed up. Now my mortgage payment is way too high for me to handle. How can I get this fixed?

Answer
“Don’t worry; this is a pretty common error that can happen when you change homeowner companies and it can usually be worked out with the bank.
Since your account is escrowed, your insurance payments are combined with your mortgage payments, so you only receive one bill. Usually, your taxes and flood policy (if you need one) are included as well.
When the insurance changed from State Farm to GEICO, GEICO may not have gotten the mortgage information in enough time. This means that State Farm may have gotten your insurance payment at the same time GEICO mailed the mortgage company the bill for your new policy. If your mortgage company made the second payment, your escrow account has been shorted.
Get in touch with State Farm to make sure they send you the refund for the year. Once you have it, contact your mortgage company, explain the situation, and use your refund to pay back the escrow account.
Once this happens, your payments will go back to normal.”
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Shannon Martin
Answered on Jul 26, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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