EMC Mortgage Forced Escrow Dallas Texas

My homeowners insurance lapsed. EMC mortgage sent me a notice. I ran down to the courthouse to pay the taxes, they already had. I bought a new insurance policy from Liberty Mutual and before my payment was recieved EMC sent the premium for the whole year!!
I know they are able to do this although I feel it is thier choice not thier duty. My gripe is that even if I pay them for taxes and insurance for this year and next they will NOT let me have back my old principal and interest payment of $685, they want now $933 per month. They will not accept $685-they send it back. I'm two nmonths into this $933 payment-owe for August and September. I'm headed straight for forclosure and they will not do anything to help me avoid this. A modification was suggested however there is no promise that the escrow will be removed even if taxes and insurance are paid in full for 2008 and 2009.
Is there any way out of this besides refinancing right now-income slow due to hurricanes in my area. Bush put a moratorium on Louisiana however EMC not honoring this.
HHHHHEEEELLLPPPPP!!!

Mike-louisiana
Lake Charles, Louisiana
U.S.A.