Not sure how to handle this one:

Lender has accelerated a note due to non payment. Lender goes on vacation and customer talks with different lender who agreed to accept two payments minus the escrows and told would be current as of 9/1/14, which is not the case. Once these payments are made customer would still owe for 8/1/14 and now we've created a deficiency in our escrow.

Original lender will talk to borrower and try to back out of said agreement with second lender, but if unsuccessful what is the best way to remedy this situation?

Trying to avoid escrow deficiency and possible creation of balloon payment at end due to incorrect agreement.

Any ideas or suggestions would be appreciated.

Original lender will talk to borrower and try to back out of said agreement with second lender.

Bad idea. The better solution is (1) fire the second lender for intervening on a loan in which he was not involved in, (2) fire the second lender for agreeing to something that countermanded something already presented to the borrower, or (3) fire the second lender and use the money the bank will save to make the borrower whole.]

I think you see the common theme here.

Other than that, talk to your legal counsel.

Or fire first lender for not leaving explicit status reports and instructions (and fire management for not making sure account was properly covered in lenders absence).

I agree that the bank is in a tough spot and needs legal involved.