Legal Question in Real Estate Law in Indiana

To answer your last question: yes, they really are this inept. As to resolving your problem: a lawyer's letter would probably make the mortgage holder behave. But I suggest contacting your United States Congressional representative. Believe it or not, these men and women -- even the Republicans -- enjoy helping their constituents resolve problems with the federal bureaucracy. Or you could do what your Congressman's staffer would do, contact the head of the department of the institution you are dealing with, provide a clear written statement of the facts and the confusion, and ask for help. But I hope you give this over to your congressman. He will be glad you did. Or spend a few hundred bucks on a friendly lawyer; he would be glad, too. Good luck.