Consumer complaint received 2016-12-27
Company: FIRST HORIZON BANK
State: CA
Product: Mortgage
Sub-product: Other mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
1. In XXXX, we were placed in foreclosure in violation of the CA Homeowners Bill of Rights. The illegal foreclosure continues and XXXX, XXXX and First Horizon Loans have again placed our home for sale at auction on XXXX/XXXX/XXXX. 

2. The property was purchased in XXXX and the loan represented a property that was habitable with potable water. A domestic well serves as the only source of water for the property and we were told at the time of the sale that the water was potable and safe. We have since learned the lender did not obtain the lender-required XXXX XXXX XXXX prior to approval of the loan ( the property is within XXXX miles of a XXXX XXXX XXXX Site and lies adjacent to agricultural land ). 

3. After we drank, cooked, showered and used the water for all personal hygiene for several years, we learned that there are hazardous, and significant levels of contaminations in the aquifers that feed into our well. 
We are unable to use the water for any personal use ( i.e., drinking, cooking, showering, hygiene, etc. ). 

4. Disclosure of these contaminations define the property as " Hazardous, Toxic, Contaminated, Uninhabitable, Polluted, Blighted and a Nuisance '' as defined by CA and Federal agencies. 
The contaminations remain " steady state '' and we have learned the aquifer contaminations existed long before our property purchase. 

5. We would not have purchased the property with knowledge of the contaminations. We have learned no lender in our area will approve a loan for a contaminated property ; if the lender required XXXX discloses contamination, all contaminated property sales are cash-only. 

6. The contaminations are so high that there is no XXXX : there is no domestic filtration system that can decrease the levels of contaminations down to the legal limits that are allowed for safe potable water. 

7. Because the original mortgage loan was disguised as a property that is not contaminated, habitable with potable water, we have requested a principal loan reduction commensurate to the appraised value of the property with disclosure of the contaminations, as disclosure of the contaminations significantly decreased the property value. 

8. US Senator XXXX XXXX filed XXXX federal complaints with the CFPB in XXXX. At that time, XXXX reported to us that they have no authority to negotiate a principal reduction commensurate to the appraised value with disclosure of the contaminations, only the investor ( XXXX ) has that authority. When I then contacted XXXX, I was told XXXX has no authority to negotiate a principal reduction commensurate to the appraised value with disclosure of the contaminations, only XXXX has that authority. We are unable to obtain any clarification from neither XXXX, nor the investor/XXXX nor First Horizon. 

9. Recently, XXXX advised us to send a letter to the private investor of the property living in XXXX as he/she has the sole authority to reduce the loan principal commensurate to the appraised value with disclosure of the contaminations. Our attorney sent that letter XXXX/XXXX/XXXX. 

10. In the meantime, no-one at XXXX will return my calls or email outreach. Moreover, our attorney has sent a plethora of correspondence to XXXX, XXXX and First Horizon since XXXX with no response. 

11. It is our understanding that our correspondence to XXXX/First Horizon ( XXXX - XXXX XXXX ) about this contamination situation ( including independent property appraisal with disclosure of the contaminations dated XXXX/XXXX/XXXX, correspondence to/from their managers, VP and legal team, laboratory reports documenting the contamination, etc. ) appear to be missing from the XXXX files. 
We need a champion ; can you please help us?

Company response to consumer: Closed with explanation