property taxes & mortgage companies

We bought a home in a new development in California. At the time of purchase we agreed to pay our own property taxes. When the taxes were due we were unable to pay them right away so unbeknownst to us our mortgage company paid them and then set up an impound account for a year causing our 1st mortgage to jump up by $2000. We told them we would pay back what they paid and the next tax due date we would pay it but they are refusing. Is this something that the mortgage companies can do by law. We spoke to a friend who has attorneys set up and they say no they cannot but of course we did not talk to them directly. Now the mortgage company will not accept our payment unless it is the new amount. What can we do?

If you default on taxes there can be penalty clauses; but carefully review your agreement as a first step.