Consumer complaint received 2023-08-07
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — 
Company: PACIFIC WESTERN BANK (CA)

Urgent and formal complaint against Pacific Western Bank 1 ) I am writing to file an urgent and formal complaint against Pacific Western Bank for a series of unfair, deceptive, and abusive practices, as well as dishonest, exploitative business practices, fraud, and misleading actions. These actions have left me and my family in a dire situation where I face the imminent threat of homelessness unless swift action is taken to prevent my eviction ( 16 days ) from a property that is free and clear of any loan obligations. 

2 ) In XXXX, when we secured a 3-year mini-permanent loan for our unfinished house. The bank approved our loan and was aware of our financial disclosure. We were promised a 30-year loan once the house was completed, and the initial term ended. The bank that made the loan with us was closed down by the FDIC before we could obtain a 30-year loan.

3 ) Then we called the new bank about our loan extension as we had only 1 year left in our 3-year term. The new bank offered us a loan modification saying that they could reduce interest rate and even reduce the principal in the loan. We were filled with excitement and hope regarding the loan modification. 

4 ) However, the bank required us in order to qualify for the loan modification we needed to miss three ( 3 ) mortgage monthly payments.

5 ) Up to that point, we have never missed any payments. Three ( 3 ) months later the bank sent us a letter indicating they were ready to process the loan modification.

6 ) Then 11 days later we received a letter denying our loan modification saying we didnt qualify anymore because of lack of income. 

7 ) We met with the bankers at their office and went the extra mile by offering additional guarantees for the loan. We pledged our rental house, commercial land, and even my mom 's house as collateral, ( both houses were free and clear ), with a combined value exceeding XXXX ( 1 ) XXXX XXXX as the loan balance was {>= $1,000,000} but the bank rejected our offer.

8 ) We tried to refinance with other lenders because we had good credit, and we had enough income to make payments. However, the bank had already reported us as delinquent as we followed their instructions to miss and skip three ( 3 ) payments to qualify for the loan modification. That was at that point in time when we figured out the bank scam and con scheme. Indeed, the bank set us up in this situation where we were no longer able to obtain any loan from any third-party bank. 

9 ) Despite the bank shenanigans, we found some private investors, ( hard money lender ) who were willing to lend us money to pay off the bank loan and terminate our relationship with the predatory, discriminatory, and deceptive practices of this bank. 

10 ) However, whenever we offered to pay off the loan, the bank refused and countered that we needed to pay them more money and raised the loan amount each time. Eventually they asked us to pay an outrageous additional {$700000.00} more than the actual loan amount to almost XXXX XXXX XXXX.

11 ) We knew what they were doing was illegal, but we agreed to pay them what they wanted because we wanted them out of our lives and home, but the bank refused saying that our offer was not " workable ''.

12 ) At this point we understood the bank goal was to take our home and kick us out of the house because they knew they could make money from our loan guarantor and could also take our assets including the free and clear rental house property and the commercial land which we had at one point pledged as collateral to secure this loan. 

13 ) Indeed, after foreclosing our housXXXX XXXX XXXX  ) and evicting us ( XXXX ) from the house, the bank sued our loan guarantor and got XXXX XXXX XXXX dollars in relation to our loan which they had foreclosed. They filed for a Unlawful Detainer ( eviction ) claim in court and illegally claimed attorney fees as their damages ( XXXXXXXX XXXX. 

14 ) In California the foreclosure law clearly says that a bank can not pursue a homeowner once the bank chose to foreclose and take the house back. The bank chose to file a non-judicial foreclosure. Once foreclosure is completed the deed of trust is terminated. But the bank, suing us in the Unlawful Detainer court ( eviction court ) manipulated the legal system and lied to the courts claiming damages for attorneys fee based on a terminated deed of trust for a property purchased at a trustees sale. Despite having no contract with purchaser ( bank ) and despite the legal statute did not provide for attorneys fee awards, The bank managed to obtain judgments awards in the amount of {$210000.00} ( on false and illegal claims ) for a 2-hour trial ( that's in addition to the {$500000.00} the loan guarantor paid them ). This was completely illegal. 

15 ) Then the bank proceeded to file judgments liens on our rental property. 

16 ) In XXXX, we transferred our rental house ownership to an LLC, free from any outstanding debts. Shockingly, 4 years later Pacific Western Bank falsely accused us of fraudulent property transfers, aiming to unjustly seize our LLC-owned property. Their false claims, made under oath, constitute a criminal act of intentional deceit to rob us of our home. This intentional deception demands a criminal investigation. We firmly believe the bank 's motives have been nefarious from the start. 

17 ) In XXXX we received a letter, a notice of debtor examination, saying we owed the bank {$480000.00}. 

18 ) We met an attorney in XX/XX/XXXXXXXX XXXX  who told us the debt might go away or in the worst case it won't be more than {$300000.00} if we file bankruptcy. Most people think, as we did, when you file bk it is to manage your debt down or even wipe out the debt to get a fresh start. That is why we trusted our attorneys advice. 

19 ) Unfortunately, in the bankruptcy proceedings, the bank and our attorney together delayed and delayed the bk proceedings and raised the debt from {$480000.00} to {$970000.00}. Our own attorney manipulated us through the court system. When we hired him, he said his fee was {$24000.00}. Although we paid him {$120000.00} which was unexpected, he demanded {$50000.00} dollars more when we discovered that the bank would pay him {$100000.00} once after the bank seized our house, we couldnt pay him. So, he left our case and quit. We don't know how the bank is able to increase whatever amount they demand ; the court just goes along with whatever the bank demands without any questions. 

20 ) We filed initially for XXXX XXXX bk. When we figured out our attorney couldn't ' wipe out the debt. During our consultation for the problem, he confidently stated, " I know the judge very well, he might dismiss the case. '' However, we suspect that he didn't even attempt to pursue this avenue, as it seemed he was solely interested in extracting money from us. Although we don't owe this bank anything the illegal bank attorney 's fees claim and judgments, we were willing to pay them {$300000.00} to make them go away. But the bank refused. Then we offered {$400000.00} and the bank refused. Finally, we offered {$550000.00} and the bank refused. Eventually the bank tremendous amount of power and resources to influence the court system demanded to the court to convert our XXXX XXXX XXXX XXXX XXXX XXXX bk and succeeded with the conversion from a XXXX XXXX to a XXXX XXXX. 

21 ) The XXXX XXXX trustee colluded with the bank and the trustee, and the bank agreed to guarantee {$170000.00} to the trustee to sell our current home which is free and clear of any loan. The trustee knew it is very difficult to sell our home being homeowner occupied where XXXX XXXX homeless people live too. 

22 ) The trustee manipulated us and got an order to use the Marshall service to evict us. The trustee knows the bank scam and he know of their illegitimate bogus attorney fees claim and extortion scheme, but he doesn't care because his only goal is to kick us out of our home, force us into homelessness, sell our home regardless how many people become homeless. 

23 ) How can we lose two houses after one house being wrongfully being foreclosed in XXXX, and now another house, our current home, in XXXX being seized and sold for bank attorney 's fees? 

24 ) We are just 16 days away from being evicted by that same bank, Pacific Western Bank. It is disheartening to witness that when targeted by a bank, escape seems impossible. The bank wields significant power with its financial resources, and it appears that even our own attorney, who we paid, was working more in the bank 's interest than ours. We feel betrayed and violated because we realize that existing laws seem to favor the wealthy ( bank ) rather than the less fortunate ( us ). The legal system ( the courts ) allows itself to be manipulated and deceived by predators like Pacific Western Bank, ensuring that the powerful prevails. 
We urgently implore the Consumer Financial Protection Bureau to swiftly investigate Pacific Western Bank 's actions.