Consumer complaint received 2016-05-08
Company: STATE FARM BANK, FSB
State: CA
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Loan modification,collection,foreclosure

Complaint:
In XXXX of XXXX my now ex-wife, XXXX XXXX, and I took out a HELOC with State Farm Bank ( " SFB '' ) ( Loan No. XXXX ) that was secured through a home that I owned prior to marriage. This HELOC was secured through a Deed of Trust ( " DOT '' ) that expressly provided that repayment of the DOT was the responsibility of the Trustor who as the DOT states are " XXXX XXXX XXXX and XXXX XXXX ; as husband and wife ( 'Trustor ' ). '' This DOT was entered into in California and under California law in the event of divorce marital debt is to be split evenly between spouses. Most succinctly, the DOT states that " each Trustor signing below is responsible for all obligations in this Deed of Trust. '' After enduring XXXX I filed for divorce. In the divorce proceedings we discovered that XXXX XXXX had redirected more than {$330000.00} of marital funds, including from the HELOC into XXXX of the XXXX separate accounts she maintained. I lost my job in XXXX of XXXX and was unable to pay the HELOC and was forced into Ch. XXXX bankruptcy in XXXX of XXXX which was dismissed in XXXX of XXXX. During the bkrptcy, I notified SFB that my ex-wife was jointly liable on this debt and demanded that they seek payment from her also. 
On XXXX XXXX, XXXX SFB sent me a Notice of Default and demanded that I pay {$330000.00} which is the entire amount of the HELOC. I immediately contacted SFB and spoke to XXXX XXXX. I advised XXXX XXXX that the HELOC was incurred during my marriage and that under the California law marital debt is to be split evenly. I advised her that I could now make the monthly payment of {$850.00} and that I wanted to stay in my home. She said that I would have to pay the entire HELOC to stop the foreclosure. I explained that my ex-wife owed half of the debt under Ca. law and I advised that I could pay {$160000.00} of the HELOC immediately. 
She stated that Ca. law does not apply and that the loan documents do not show that my ex-wife was liable for this debt. I told her she was n't being truthful and demanded the documents be sent to me. I received the documents 2 days later -- the DOT with equivocation states that she is a Trustor and that " EACH TRUSTOR AGREES '' to pay the " indebtedness '' meaning " all principal, interest, and other amounts, costs and expenses payable under the Credit Agreement. '' The DOT also states clearly that " each Trustor signing below is responsible for all obligations in this Deed of Trust. '' SFB flat out lied to me and forced me to sell my house when I offered to pay the $ that I owed under the DOT. 
Moreover because XXXX XXXX advised that my house would be sold in " XXXX or XXXX '' I had to fire sale my house at a price that was {$70000.00} less than its value. The sale of my house is set for XXXX XXXX, XXXX. I have a XXXX and we can not now stay in our house because SFB used the foreclosure laws and the threat to sell my house as a weapon against me. 
SFB mislead me by claiming that my ex-wife is not liable for her share of the HELOC and by demanding that I pay more than {$160000.00} of my abusive spouse 's debt SFB is rewarding the XXXX of my spouse and forcing me out of my home in violation of the law. 
I want to stay in my home but at minimum forcing me to pay XXXX debt is a violation of California law and the DOT and is morally wrong.

Company response to consumer: Closed with explanation