Consumer complaint received 2015-09-09
Product: Mortgage — Home equity loan or line of credit
Issue: Loan modification,collection,foreclosure — 
Company: ZIONS BANCORPORATION (ID)

Ten years ago, I set up a HELOC loan as a XXXX mortgage on my home, in order to take care of emergency bills that had arisen, etc, and then with other needs over time, that amount ended up at $XXXX, which I have now been paying Interest-Only on for the past XXXX years - around $XXXX/month.  Originally, back in XX/XX/XXXX, I was going to pay off all of my debt (including the HELOC and primary mortgage) with the sale of land, for which I had committed buyers for $XXXX total, for XXXX land parcels totaling XXXX acres.  However, an administrator for XXXX County messed up my subdivision transaction, dragging me out for 2 years, and costing me XXXX of dollars.  I lost both buyers at around the 1 year mark, and then by the XXXX year mark when the County finally gave me the subdivision, the real estate market crashed.  At that point, my house was completely upside-down on just the 1st mortgage, let alone the HELOC sitting as the 2nd.  Zions Bank is the lender for the HELOC.  I didn't feel the financial pain of being upside-down until my ex-wife abandoned our marriage for another man, XXXX, and then drained me of XXXX of XXXX of dollars.  At that point, I was trying to live on a monthly deficit, so I tried to work with Zions Bank to allow a short sale --which my primary mortgage lender, XXXX, was willing to do.  But Zions refused.  They also refused to work with me on any principal reduction or modification.  Fortunately, my primary lender provided a modification program significant enough to keep me in the home, so I kept paying the approx. $XXXX/mo to Zions and didn't skip a beat.  Then, in XX/XX/XXXX, my corporate employment ended, due to our company being bought and downsized.  By the time my severance pay ended in XX/XX/XXXX, I hadn't been able to obtain a job that came anywhere near replacing my income, so I was in a more serious monthly deficit than ever before.  So, I contacted Zions Bank again to discuss the situation with them and see what they would work out with me.  They told me to fill out a Hardship Packet, so I spent hours gathering all the information, filling out the forms, etc, and submitted it.  They responded back with a denial letter, stating that my income was TOO LOW to qualify for their loan modification program!!  I was blown away -- that was the whole reason I had submitted the hardship packet in the first place.  Why would I have even approached them if my income was sufficient??!!  SO, I complained about the denial, and they said I could submit an appeal.  Which I did right away; and all they did was deny it too, on the same basis.  It was a sham.  Fast forward to this summer, when I received a letter from Zions Bank, stating that my HELOC will balloon to a payment of approximately $XXXX on XX/XX/XXXX (a little over XXXX weeks from now).  The letter said to contact them if I "anticipate difficulty in being able to make the required payments" and said, "there may be options available to you"...and then they listed various options, such as "extension of loan term", "interest rate reduction", "principal forbearance", etc.  But, when I contacted them, they informed me that -- since I had already been denied by them previously -- they wouldn't do anything to help me, unless I could show that my income had significantly improved!  Again, if my income had significantly improved, why would I be contacting them?!?  So, I am sick and tired of their tactics -- they are essentially forcing me to default, so they can put me into collections.  That is going to harm the credit standing I have worked XXXX years to maintain, and I am extremely frustrated with them.  A friend of mine heard about my situation and suggested I contact CFPB.