Consumer complaint received 2017-09-07
Company: FIRST HORIZON BANK
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
XX/XX/XXXX - I entered into a construction loan with First Horizon ( subsidiary of First Tennessee ) in XX/XX/XXXX.  The first mortgage lien was for {$840000.00} while the second mortgage lien was for {$110000.00}. The primary property in question is XXXX XXXX XXXX, XXXX, MD XXXX. 


Summer XX/XX/XXXX - Because of the market downturn, First Horizon failed to comply with their contractual obligations despite many requests. Thus, I had to complete the home ( XXXX XXXX XXXX, XXXX, MD XXXX ). I had to pay the builder {$140000.00} - out of pocket. Also, I had to pay out of pocket over {$100000.00} cash to complete my home. Still First Horizon failed to reimburse for the full amounts owed to both the builder, as well as myself. 


XX/XX/XXXX Because of First Horizons failure to comply with the loan, I had to file a US Federal Chapter XXXX Bankruptcy reorganization plan. Reference Chapter XXXX Case no. XXXX. 


XX/XX/XXXX First Horizon/First Tennessee attempt to release the automatic stay on the property. 


XX/XX/XXXX First Tennessee, unwillingly executes a construction modification with numerous errors, fraud, predatory lending characteristics in. Loan was executed at {$680000.00}. Truth in Lending statement APR is in conflict with APR noted on statement. Also, loan number is in conflict with the one statement that was sent in XX/XX/XXXX. 
XX/XX/XXXX Reorganization plan was approved under Docket No. XXXX. First horizon Home Loans was noted under article 3.02 as a creditor that had not filed a proof of claim. XXXXrticle 3.02 further noted that The Debtor ( XXXX and XXXX XXXX ) will pay the Allowed Secured Claim of this Creditor ( First Horizon Home Loans ) pursuant to the terms outline in loan documents executed simultaneously with the approval of this Plan. At this point it is noteworthy - loan documents executed simultaneously with the approval of this Plan NEVER occurred. 


Summer XX/XX/XXXX - Investment homes had to be forfeited. 


XX/XX/XXXX Federal Court Judge XXXX approves the reorganization plan under Docket No. XXXX. Order was signed and issued to First Horizon Home Loans. 


XX/XX/XXXX Debtors continue to make payments in good faith awaiting loan documents to be issued. No loan documents were never issued. 


XX/XX/XXXX Debtors continue to make payments in good faith awaiting loan documents to be issued. No loan documents were never issued in accordance with confirmed plan.
XX/XX/XXXX - Debtors continue to make payments in good faith awaiting loan documents to be issued. No loan documents were never issued in accordance with confirmed plan. 


XX/XX/XXXX XXXX XXXX ( bankruptcy firm working on behalf of First Horizon ) notes a loan is in default since XX/XX/XXXX. Affidavit is signed to that affect. 


XX/XX/XXXX Debtors dispute loan is in default. Certified notice sent. 


XX/XX/XXXX First Horizon returns payments. It is again noted the Chapter XXXX approved plan under article 5.03 notes If any holders distribution is returned from the address applicable under 5.02 of the Plan as undeliverable or if a creditors distribution check is not negotiated such that it clears the debtors bank account within 60 day following mailing of such check, then the Debtor shall be authorized in its sole and absolute discretion to stop payment on such distribution and to make no further distribution with respect to the Allowed Claim giving rise to such distribution. 


XX/XX/XXXX First Horizon files notice of intent to foreclose. XXXX County Circuit Court Case number XXXX XXXX XXXX. First Horizon signed an affidavit indicating the load was in default since XX/XX/XXXX. XXXX XXXX statements were presented in court clearly illustrating payments were made. 


XX/XX/XXXX Debtors dispute loan is in default. Certified mail sent to First Horizon. 
XX/XX/XXXX Hearing is held on the case. 


XX/XX/XXXX - XXXX XXXX is unaware if an Automatic Stay is on the property. Hearing gets postponed for XX/XX/XXXX. 


XX/XX/XXXX Hearing is held in Federal Court Bankruptcy. Federal Court Judge XXXX confirms an Automatic stay has been lifted by virtue of the plan being confirmed. Does not rule on other points presented by First Horizon. Judge XXXX does not rule on whether a confirmation stay is in place because it was not presented before her. 


XX/XX/XXXX In XXXX County Circuit Court, Judge XXXX sets hearing for XX/XX/XXXX. 


XX/XX/XXXX First Horizon through its legal counsel post {$25000.00} to foreclose on home. Pending sale date is set for XX/XX/XXXX. 


XX/XX/XXXX XXXX County Circuit Court Judge XXXX rules against debtors indicating debtors were in default despite the preponderance of evidence in favor of the Defendants. And yet despite the limited evidence submitted by First Horizon. 


XX/XX/XXXX - An appeal is filed. Defendants legal counsel file a motion to short response time from Plaintiffs. Motion is granted. However, plaintiffs delay in getting a response. 


XX/XX/XXXX Defendants counsel file a motion to stay the enforcement of the execution of a pending sale.

Company response to consumer: Closed with explanation