I think what you mean to say is that you had hazard insurance prior to this loan servicer that you paid on your own, and when your loan got sold to this new servicer, they require you to pay it in the mortgage as part of an escrow account.
I was not aware that anyone could force an escrow account on you after the fact, I would continue to call them and complain.
However, your payment has not going up, not really. When you were paying the insurance on your own you were paying $1200 a year, once a year. Now you are paying $1200 a year, once a month, in $100 increments. Your finances have not gotten worse, you are still paying the same amount every year in different pieces, that is all. It's really not the end of the world if it has to stay this way.... more
Hmm, why would you want to remodel something that has no value? It will be impossible to get a 2nd loan because nobody does 125% LTV loans. What I would do is keep your home how it is, or short sale it and rent a home that has some of the remodeled features you are looking for.... more