Consumer complaint received 2018-01-09
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: REGIONS FINANCIAL CORPORATION (LA)

Our mortgage was sold to XXXX XXXX aka Regions in XXXX. Over the course of this loan, we frequently shopped around for cheaper insurance rates due to the fact that we were remodeling the house and we had builders risk policies that are very expensive and change drastically from agent to carriers. Anytime there was a change on our part, XXXX XXXX   would take this opportunity and force place hazard insurance coverage many times the norm at astronomical rates. Over and over we would contact customer service, provide proof of coverage and Regions would credit our loan. We did this many times, I couldnt even speculate on the number of times this took place! At one point after speaking to a research representative we finally showed proof of continuous coverage and was told, that at this point you have provided all necessary documents and we will credit everything back and get you back to your original payment amounts, with no unnecessary added insurance escrow! But, for some unknown reason, Regions, out of no where, not only asked for proof of insurance again, but added enormous amounts of unneeded insurance! They also went in and added a force placed policy in XX/XX/XXXX  for back insurance for years prior??? However, it gets even worse! Over the last year, this already problematic issue turned into a nightmare. Regions has negatively affected our Excellent credit scores that we worked very hard to attain, because of the huge importance of the need to have excellent credit in our industry and profession! Regions did this by returning each monthly mortgage payment that we had setup on auto pay for the exact reason of never missing or having the possibility of being late and then reporting to the credit bureau that we are in default. The payments in the amount of {$3000.00} have been received and cashed by Regions, but then Regions issued and mailed a check back to us. To date we have not cashed any of these checks that date back to XX/XX/XXXX, nor has Regions applied any of the payments that they received and cashed from us to our loan. Regions claims we are nine months delinquent because of the forced placed insurance which increased the monthly payment and is threatening to foreclose. We have provided proof of coverage to them, like I said numerous times. However, they refuse to remove the escrow which more than doubles the monthly mortgage payment. 

The mortgage is an interest only with no escrow account, as we pay our property taxes and hazard insurance directly. We have had issues with the insurance with Regions from the very beginning of the loan, but XX/XX/XXXX we now had issues with property taxes as well. Although we paid our taxes annually, we had to resolve this issue too and ultimately sent the funds in full to Regions in good faith. Regions sent {$22000.00} on XX/XX/XXXX and sent {$24000.00} on XX/XX/XXXX for payment of property taxes. Both payments were sent well in advance of the due dates required for the given years. 

We have attempted to resolve the issues with this loan, and thought we had. As on XXXX XXXX, XXXX we have email correspondence from a Regions Research Specialist stating, you have received a refund for every lender placed policy that was paid from your escrow, except for the period from XX/XX/XXXX-XX/XX/XXXX. Once we received proof of coverage for that time period, we can refund that as well. Then on XX/XX/XXXX, a letter was received by mail that an earned premium of {$25.00}, XXXX will be billed to your escrow account for the coverage we obtained for the period of lapse in your coverage. We contacted Regions again and threatened to get a lawyer if this continues. After that conversation, letter after letter was received with forced placed policy dating back to XX/XX/XXXX. Now suddenly we are being charged for force placed insurance policies in 2017 for the year of XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. How can insurance be obtained and charged to a customer in the past? 
Forced Placed Hazard Insurance Policies from XXXX XXXX XXXX XXXX were issued as followed : An issue date of XX/XX/XXXX, we received notice of Forced placed insurance policy for the effective date of XX/XX/XXXX-XX/XX/XXXX. The total premium {$18.00}, XXXX Another issue date of XX/XX/XXXX, we received notice of Forced placed insurance policy for the effective dates of XX/XX/XXXX-XX/XX/XXXX. The total premium of {$20.00}, XXXX. 

Then issue date of XXXX XXXX, XXXX, we received notice of yet another Forced placed insurance policy for the effective dates of XX/XX/XXXX-XX/XX/XXXX. The total premium of {$26.00}, XXXX. 

A issue date of XX/XX/XXXX, we received notice of Forced placed insurance policy for the effective dates of XX/XX/XXXX-XX/XX/XXXX. The total premium of {$24000.00} Of course we have questioned this and No one at Regions can explain our account to us or the excessive charges applied to our mortgage. This has negatively impacted us, as we can not refinance our mortgage with us reportedly not paying the past nine months. This home has approximately {$800000.00} mortgage balance, but is valued and insured for {$4.00} million. We have invested hundreds of thousands of our own money into a major renovation, with the intentions of refinancing and getting the funds back. With the issues that Regions has caused, we have not been able to get a loan to refinance our Mortgage. Our Credit has nothing Negatively reported with the exception of Regions, both my husband and my credit went from XXXX+ to XXXX. We only discovered this when attempting to finance Equipment for our business, but was denied. Now Regions is affecting our livelihood. Please help us consumers with this unjust treatment by XXXX XXXX! 

We are in desperate need of assistance, we do not know how else to resolve this matter. After having an attorney contact XXXX XXXX to inquire about the transactions discrepancies, they immediately assigned our account to a law firm and demanded we pay in full within 30 days or have the home foreclosed. Out of fear, of loosing a legal battle with Regions, we immediately halted moving forward legally with our lawyer. We were afraid that they would continually decide not to accept our payments and actually follow through with the foreclosure!