Consumer complaint received 2023-12-22
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: SOUTHSTATE CORPORATION (SC)

My name is XXXX XXXX XXXX and my son is XXXX XXXX XXXX. I co-signed the mortgage on this property with him. 

Our Insurance inadvertently lapsed on XX/XX/XXXX XXXX XXXX  on XXXX XXXX XXXX XXXX. We switched multiple properties with a new broker in XXXX and was not aware that the insurance had lapsed. Active policy is posted below starting on XX/XX/XXXX. 

On XX/XX/XXXX, XXXX XXXX, reached out to XXXX XXXX who is a co-signer on the loan who then connected XXXX XXXX XXXX. After our conversation I connected XXXX with my insurance broker as XXXX told me I did not have insurance and South State was looking to collect money for the forced place insurance the same day on the XXXX. I was also connected with XXXX XXXX from South State who also was emailing the insurance company. My insurance company mailed the policy same day to South State Bank. XXXX XXXX talked to South State Bank multiple times every month between XXXX - XXXX to get this resolved We thought the matter was resolved but South State Bank kept the process moving forward saying they never received the policy. Our insurance company sent them the policy at 6 times between XX/XX/XXXX thru XX/XX/XXXX. In XX/XX/XXXX XXXX XXXX received a letter saying we owe escrow money for XXXX for forced place insurance. I then ask my insurance company to send over the proof of insurance again, which they did. 

After receiving no additional help from South State besides attempting to call into customer service for months they hired a lawyer to place the house under foreclosure in XXXX. It is at this point that after sending in both copies of old and new insurance to the lawyer and calling both insurances, I find out that the first one had been lapsed due to a nonpayment although I have all my insurances run with auto pay. 

South State is saying I am at fault because I didn't personally give them proof of insurance until XXXX although my insurance brokerage said they mailed it in XXXX, sent it in XXXX, XXXX as well as XXXX. They modified my Loan to include escrow for insurance in XXXX which begins the late payments on both our credit report. I've included the payment history sent to me by South State and I ended up paying for everything so they wouldn't foreclose my house. They dinged me for late payments from XXXX all the way to XXXX. Because my insurance lapsed on XXXX XXXX XXXX for five months I do truly owe XXXX for the forced place insurance that was necessary for the months and I am getting XXXX for the yearly insurance from a scanned copy of a letter they sent me in XXXX apparently. 

They continue to force me to pay monthly escrow of XXXX for insurance even though they have a copy of our paid policy thru XXXX XXXXXXXX XXXX. 

These are the payments and penalties weve been forced to pay even though we supplied them the documentation in XXXX of an acceptable insurance policy. 

Insurance Escrow {$2800.00} {$100.00} {$1000.00} Lawyer fees as of XX/XX/XXXX {$1000.00} estimated lawyer fees as of XX/XX/XXXX {$240.00} Total -- {$5400.00} Current Monthly Escrow.. {$300.00} We clearly acknowledge that there was an administrative error on our part which forced the lapse in coverage for four and 1/2 months. All my insurance coverage was moved to a new agent on XX/XX/XXXXXXXX XXXX and South State Bank is the only entity that said it never received and still didnt after numerous attempts and were in direct contact with our insurance carrier. They started foreclosure proceedings even though we were paying the principle and interest. Once South State Bank had the attorney contact XXXX XXXX, we paid all fees related to the forced insurance. 

As the co-signer, XXXX XXXX never received one letter to this day concerning this matter but they have destroyed both our credits with a four month late payment history and one month showing foreclosure process starting. XXXX XXXX credit score went from XXXX to XXXX. 

As of XXXX South State Bank refuses to stop the forced insurance escrow even though they have acceptable insurance policy from us. 

Their claim that they never received the new insurance policy after 6-8 policies were sent. They also including them stating they couldnt open up a PDF negates the fact the we had acceptable insurance coverage as of XXXX.