Consumer complaint received 2020-02-27
Company: FIRST HORIZON BANK
State: TN
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Closing on a mortgage

Complaint:
I am the VICTIM OF PREDATORY LENDING and I'm still SUFFERING from the ramifications of a BAD LOAN 14 years later. I filed a complaint with OCC.GOV as directed by my attorney and the TN Dept of Financial Institutions in XX/XX/XXXX and NOTHING was done. ( See attached ). 
In XX/XX/XXXX, a loan officer for XXXX XXXX XXXX offered me a Commercial Loan to buy a medical office building and he gave me a summary outline of how the loan was going to look. ( Please see attached ).

One paragraph states : " RATE : Fixed at 7.90 % for 5 year term, BASED ON A 20 YEAR REPAYMENT. '' The next line states " Monthly payment : BASED ON A 20 YEAR AMORTIZATION for the {$630000.00} ... '' Five years later in XX/XX/XXXX, the same loan officer called me to inform me that I had a BALLOON LOAN and that the balance of {$600000.00} was due and payable immediately. 
I told him that I had a 20 year loan NOT a balloon loan. I showed him the attached document that said, " BASED ON A 20 YEAR REPAYMENT '' and " BASED ON A 20 YEAR AMORTIZATION. '' Then he said, " But it says, " For 5 year term. '' And I pointed out that that paragraph is entitled " RATE '' and that the RATE was the ONLY thing that paragraph was discussing. According to the way it was written, I had a fixed RATE for 5 years and an UNKNOWN or UNSTATED RATE for the remainder 15 years. The form says in 2 different locations, " BASED ON A 20 YEAR REPAYMENT '' and " BASED ON A 20 YEAR AMORTIZATION. '' If this form was turned in to an English high school teacher or an English college Professor, I'm sure they would agree with me that the way it was written, the loan was for 20 years and had a fixed rate of 7.90 % for 5 years and an unknown or unstated rate for 15 years. This document was SKILLFULLY AND PURPOSEFULLY WRITTEN TO HIDE THE FACT THAT IT WAS A BALLOON LOAN. 
So I ended up having to file Bankruptcy in XX/XX/XXXX because I did NOT have {$600000.00} suddenly at the drop of a dime. Since I had a personal guarantee on the Commercial Loan, my bankruptcy attorney advised me to file for personal bankruptcy instead of a business bankruptcy. When I filed for personal bankruptcy, I had to include all of my bills, including my mortgage. 
In XX/XX/XXXX, the bankruptcy court Confirmed my Bankruptcy Plan which included paying a REDUCED amount on my mortgage from {$6200.00} per month to {$5100.00} per month. Now Seven ( 7 ) years later, the mortgage company has filed a Notice of Default because they said that I was supposed to have paid the ORIGINAL {$6200.00} per month all of these 7 YEARS and NOT the reduced amount ordered by the court. I only filed for bankruptcy because of a BALLOON loan that I was NOT AWARE of after being the VICTIM OF LIES AND PREDATORY LENDING by XXXX XXXX XXXX. My mortgage was CURRENT and ON-TIME at the time of filing. I only paid the REDUCED rate because I was INSTRUCTED to do so by the court! Now I'm being told 7 YEAR LATER that I should have paid the ORIGINAL AMOUNT that I had been paying BEFORE the bankruptcy!!!

Company response to consumer: Closed with explanation