Consumer complaint received 2021-05-22
Company: FIRST HORIZON BANK
State: NC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
Dear Consumer Financial Protection Bureau, This is in reference to my complaint ID XXXX and complaint ID XXXX. 

On XX/XX/XXXX, I purchased the property located at XXXX XXXX XXXX XXXX XXXX Nc XXXX from the seller ( XXXX XXXX & XXXX XXXX XXXX. 

I took a loan to XXXX XXXX XXXX. I renovated the property and tried to sell it. I found a buyer and we signed a sale contract. After a month of inspection, title search, and other due diligence, the buyer decided that they can't proceed because the title is not clear. 

The title is still encumbered by the Deed of Trust executed by the previous seller, XXXX XXXX & XXXX XXXX, in favor of XXXX XXXX XXXX XXXX XXXX, dated XX/XX/XXXX and recorded in Book 7105, Page 396, XXXX XXXX XXXX, securing the principal sum of {$40000.00}. 

XXXX XXXX XXXX XXXX XXXX is now First Horizon. 

The previous seller " XXXX XXXX & XXXX XXXX '' paid off the remaining balance on the above-mentioned deed of trust Book 7105, Page 396 '' to First Horizon when they sold the house to me. 

However, First Horizon bank failed to record the lien release letter for the above-mentioned deed of trust ( Book 7105, Page 396 ). 

That is why I wasn't able to sell the house. I suffered severe financial loss as a result of First Horizon bank 's negligence and failure to record the release of that deed of trust. 

The buyer waited 1 month for me to clear the title. I called First Horizon dozens of times begging them to send me that release letter so I can sell the house to the buyer. First Horizon representatives keep telling me I'm a third party. They need XXXX XXXX & XXXX XXXX to reach out to them and ask them for that letter. 

But XXXX XXXX & XXXX XXXX refuse to help me or even answer my emails. I have a copy of dozens of emails that I sent to XXXX XXXX & XXXX XXXX begging them to get that release letter for me. They couldn't care less. They just sold the house and there is no motivation for them to cooperate with me anymore because they don't need that letter. I'm the one who is trying to sell the house and I'm the one who needs this letter. XXXX XXXX & XXXX XXXX have no incentive to help. 

First Horizon Bank is aware of this loophole. They know the previous seller, XXXX XXXX & XXXX XXXX, would not intervene because they have no incentive to do so. 

First Horizon Bank is also aware that I'm a third party and I can't get that letter on behalf of the real borrowers, XXXX XXXX & XXXX XXXX. 

So, First Horizon Bank knows that there is no authority who will come after them and force them to record this lien release letter. 

Why would First Horizon Bank bother to record that letter if they're reassured that no one can come after them? Why would they waste time & money on this recording? 

Even the closing attorney who facilitated the sale of the house from XXXX XXXX & XXXX XXXX to me is unable to do anything. They're also a third party to this loan. 

They name of the attorney was ( XXXX XXXX XXXX  ). I sent them dozens of emails begging them to do something, and they replied that is none of their business. According to the UNIFORM RESIDENTIAL MORTGAGE SATISFACTION ACT, it's the responsibility of First Horizon Bank to record the letter within 90 days from closing, not the responsibility of the closing attorney. 

But why would First Horizon Bank comply with UNIFORM RESIDENTIAL MORTGAGE SATISFACTION ACT if there is no authority that can enforce that act? 

This is a loophole that needs to be fixed, please. I'm sure there are many consumers who fell victims for this loophole. I just accidentally found out about it because I happened to be selling the house soon after buying it. Most of the other victims sell after years and they never even have a recourse. 

Because I wasn't able to clear the title, I had to compensate the buyer who was trying to buy the house from me for their time. 

I also took a loan to flip this house as I mentioned earlier. I'm paying interest every day. I'm paying more interest on this loan because I wasnt able to sell the house in time. So, Im paying interest for a longer duration now. Will First Horizon Bank compensate me for those additional interests that I paid as a result of their failure to record the release? 

Also, when I fail to sell a house and relist it on the market, the houses lose 10 % of its value because buyers now think that there is something defective with my house and they wont want to pay full price anymore. Will First Horizon Bank compensate me for this 10 % loss in value that I suffered as a result of them? 

I want this message to be forwarded to First Horizon, please. I want to know thiner answer, please. They destroyed me financially so writing an answer to me is the least they could do. 



Thanks XXXX

Company response to consumer: Closed with explanation